What Does a Property Appraisal Tell Your Bank?

There may come a time that you want to use the equity that you have built up in your home for various reasons. Perhaps you want a loan to do some home repairs or go on vacation.

Then again, maybe you are considering selling your home. In either case, you will need to have a property appraisal done by professionals in order to determine the worth of the house. All lending institutions will expect this so that they know how much money they can lend you based on your home equity. If you are selling then you may want an appraisal to get a fair market value when listing your home.

When the appraiser comes out to put a value on your home, he will inspect several things. You may run around and done a lot of inside decorating but this may not ray white box hill have any purpose. At least not as far as the appraiser is concerned.

Some of the things that he will be interested in when doing the property appraisal is the exact location, which is extremely important. There are other factors like if the house has a fireplace for example. He will need to know what the house is constructed of for example brick or siding. How many numbers of bedrooms and bathrooms and the square footage of the living spaces are all very important factors.

Now as we mentioned there might have been several updates as far as decorating that took place in the house but this is not going to be a big issue when in comes to the value placed on the property appraisal. On the other hand if you have done some major remodeling on the inside like your bathroom or your bedrooms that is an important aspect as well because it is an important positive selling feature.

Many people are very surprised to find out that their basement remodeling isn’t that big of a deal and that’s partly because the appraiser only wants to know what your basic living space is and most people don’t spend that much time in the basement.

What the appraiser is looking for anything that will increase the value of your home. The reasons for financial institutions getting a property appraisal like this is in the case that you don’t pay your loan and they have to foreclose on it then they need to know exactly how much money can be expected. They have to make sure that the value of the loan they are going to give you is protected.

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