Real Estate Appraisal - A written justification
of the price paid for a property, primarily based on an analysis of comparable sales of
similar homes nearby.
Appraisal Fee - The appraisal fee covers the cost of a professional
appraiser evaluating real estate to estimate fair market value. The appraisal calculates
the loan amount as a percent of the property value. This loan-to-value (LTV) ratio is one
of the factors that dictates whether a lender is willing to approve the mortgage
application and if additional fees may be required (e.g., mortgage insurance). Appraisal
costs depend on the location of the real estate (rural vs. urban), the complexity of the
appraisal and the going rates for area appraisers.
Appraised value - An opinion of a property's fair market value, based on
an appraiser's knowledge, experience, and analysis of the property. An appraisal is based
primarily on comparable sales, and the most recent sale is the one on the property in
question, the appraisal usually comes out at the purchase price.
Appraiser - An individual qualified by education, training, and
experience to estimate the value of real property and personal property. Although some
appraisers work directly for mortgage lenders, most are independent |
