If the Buyer is securing a new loan to purchase your home, the Buyer’s Lender will require an appraisal to determine the fair market value of the property. A licensed or certified appraiser will research nearby “comparables,” houses in your immediate area that have sold in the last six months and are similar in size, age, construction, and amenities.
An appointment will be made for the appraiser to measure your home, draw a representative floor plan, take photographs inside and out, and confirm the property’s condition, specific improvements, and features. After a few days, the appraiser delivers an appraisal report on a standardized form to the Buyer’s Lender which includes the appraiser’s opinion of the market value of the property. Sometimes the appraisal report is used by both parties to set the sale price of the property appraised.