How A Home Appraisal Works 

Whilst a home inspection will point out any flaws with the home that you are thinking of buying, you will need to seek the expert opinion of someone who will be able to tell you exactly what the home is worth based on its current conditions and other factors.  They will also be able to tell you how much it will cost to put any issues right with the home. 

It is a very good idea to get a home appraisal, because often buyers can get carried away with the character of a home, or the benefits that they can see of living there.  If your mind has become clouded with a dream of living in the home, then you need someone who is impartial to the sale to evaluate the state of the house and let you know the true value of it.  The last thing that you want is to move into a property and find that underneath the features and character is a home that is practically falling down and will cost you a lot of money to repair. 

When the home is appraised, the professional will only tell you about any obvious issues that you may run into.  Such things as a wall that is about to fall down, or rotten beams are likely to come up, but they will probably not be very thorough.  You should always use an appraisal in addition to a home inspection, as the inspection will go into far more detail about the work that may need to be done in the future. 

To make the appraisal the appraiser will look at similar homes in your area with similar features and then compare the prices.  The appraised value of your home will be based on these other property values.  In addition, the appraiser will use a cost approach to see how much your home could cost to rebuild if it needed to be demolished and built again.

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