General Appraisal Information
Be an informed buyer ...
A real estate purchase is typically the largest investment someone will make in their lifetime. It's important to protect yourself by getting your investment appraised. An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home or condominium purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision process to provide funds for a mortgage. While the lender is technically the owner of the appraisal, as the Buyer you still have certain rights:
You have the right to obtain your own independent appraisal, even if you are paying cash for the property.
You have the right to know what type of valuation service is being ordered for your loan if seeking a mortgage.
You have a right to make an appraisal a contingency in your real estate sales agreement.
The appraiser is the independent, impartial, and objective professional in the mortgage transaction. An appraiser develops an appraisal that is a credible, reliable, and supported opinion of value. However, there are a number of other products which appraisers, real estate brokers, or other entities prepare which vary in levels of analysis, detail, and reliability. Learn more about appraisals and the other products in NAR’s Residential Appraisal Process for Home Buyers Brochure.