Frequently Asked Questions
Why get an appraisal?
In order for you to obtain a mortgage loan, your property value must
be assessed. This value is estimated by a professional real estate
appraiser. This value is used by your lender to demonstrate security
for the loan they will provide.
What is a real estate appraiser?
A real estate appraiser is a professional who has received education
and training in estimating property value. Continuing educational
hours are needed each year to maintain this state appraisal license.
There are strict guidelines and standardized methods to ensure the
value you receive is fair. Georgia law requires licensing for all
appraisers who estimate fair market value for federally backed loans.
How does the appraiser determine the value of a property, and what
factors are considered when estimating the value?
- The appraisal is an estimate of the fair market value of your
property. It includes an analysis of all structures that are
permanently attached to the real estate. Neighborhood sales
are found and compared
to your property. If the comparable sale has a feature that is
superior to your property, a negative adjustment is made to its
If the comparable sale has a feature that is inferior to your
property, a positive adjustment is made to its sold price. There
are strict guidelines and standardized methods to ensure the
receive is fair.
- Physical features of the home: The appraiser views your home
as if he were an interested buyer. The age,
physical condition, appeal and construction quality are all considered.
The home and all structures are measured.
- Location: We've all heard the phrase "location, location,
location." Neighborhood factors that are considered include the
appeal of other homes in the neighborhood and access to goods,
services, and employment.
Who is responsible for paying for an appraisal?
The fee is usually paid by the homebuyer if the appraisal is associated
with a sale. In refinance transactions, the homeowner or lender will
pay the appraisal fee. Different form reports are utilized by lenders
and fees for these reports range from $250 to $450. Narrative, commercial
reports are priced according to the scope of work.