Perhaps rather basic, but for those individuals that need the details of what is a real estate appraisal, the following links (below) outline what exactly is an appraisal, the ingredients of the appraisal, and the difference between the types of Appraisals, including the Cost Approach – Sales Comparison Approach – Replacement Value – Purchase vs Refinance.

Home Value / Appraisal

There is a difference for residential and commercial appraisals (and loans associated), and in some circumstance (commercial properties), the Income Approach.  Fortunately, the mortgage officers know the appraisal “drill” and can answer procedural questions.  On a purchase, the Lender is going to require a Purchase appraisal, reflecting the type of loan in process with the Buyer/s.

Cash offer, perhaps a sales approach or a purchase appraisal would prove helpful.  Appraisers will accommodate such an appraisal, usually the cost in the are of $400 to $700, depending on the size of the property.

The success of purchasing a house (not cash only) will hinge directly on the appraisal.  Current appraisals are conducted, and then processed for verification of data through a AMC (Appraisal Management Company).  What once took 2-3 days for the turn around of an appraisal at $200, is now taking 7 – 10 days, costing more in the neighborhood of $425-$450.  Also, appraisals go out to bid; it is not unusual for an appraiser from our of market area to conduct the appraisal.

Click Here for more general detail.

For extreme detailed information, Click Here

Cliff Daniels
720 434 1418
cliff@actprop.com
Actprop.com