When you apply for a mortgage, an independent appraisal will be completed on your property to determine its value. It's important to remember that the appraiser does not create value. Instead, an appraiser interprets the market to arrive at a value estimate.
As the appraiser compiles data pertinent to the appraisal report, he/she will consider your property's site, amenities and physical condition. While an appraiser may spend just a short amount of time actually inspecting the property, the job is far from over.
Before the appraiser can arrive at a final opinion of value, he/she must complete a considerable amount of research and collect general and specific data on the property and its location.
There's also the need to precisely define the purpose of the appraisal. There are, for example, various types of value -- including fair market value, insurance value, tax value and value in use. Learn more about the appraisal process by talking with your Mortgage Consultant.