Appraising Your Louisville Home
What is an appraisal?
A real estate appraisal is an expert estimate of the market value of real
property. An appraiser provides a neutral opinion of
the value of real estate by using information from comparable properties in the
area of the subject property.
Why do you need an appraisal?
An appraisal is usually required by the buyer's lender when real estate is purchased. In addition
to obtaining a mortgage for real estate, here are a few other reasons that an appraisal
may be helpful:
- To lower your tax burden, appealing your property tax assessment
- To establish the replacement cost for the purchase of property insurance
- To settle a family estate
- For business mergers and dissolutions
- To protect your rights in a case of condemnation
- To negotiate a lease
In a cash purchase a Louisville buyer may have their agent provide a comparative market analysis and opt out of the appraisal contingency.
Will the appraisal satisfy the need for a home inspection?
The appraisal process does not include a full home inspection. It is highly recommended for buyers to hire qualified Louisville home inspectors when purchasing
property. While the appraiser’s job is to estimate the value of the property,
the home inspectors’ job is to evaluate the condition of the home. Talk with
your Louisville home inspectors about what their inspection includes and what type of
report they provide after the inspections are completed. Ask your Louisville Realtor to refer you to qualified Louisville home inspectors.
What do appraisers look for?
The appraiser views the foundation,
siding and roofing, assessing the quality and condition of the exterior structure. The appraiser will also look at the interior of the home, including the walls,
type of flooring , amount of doors and
windows, assessing the condition and quality of these areas as well. Anything attached to the property, such as lighting fixtures and
built-in appliances are viewed. The amenities of a home will influence property value, such as
central air, fireplaces, all-house speaker systems, and solar panels. Upgrades,
particularly to Kitchen and Baths, will positively influence the value of the
property. The size of the lot, particularly front and rear yards will be considered for the
property value. Additional things the appraiser will look for include landscaping, built-in pools,
and an in-ground sprinkler system. Basically, anything attached to the property is included in consideration of the property value. The furnishings are not included in the consideration of the property value. While your Louisville Realtor has likely already suggested you remove clutter, it's also helpful for the appraiser to get full access to the property.