What Is An Appraisal?

It is very important for you to know that an Appraisal is not to replace the Whole House Inspection. The lender typically hires the appraiser (although you are most likely paying for the appraisal) to protect their investment. The lender needs to know what the value of the home is in the current market in order to determine how much money they are willing to lend you. If you have paid for the appraisal, you are entitled to a copy. The lender may require that you request a copy, in writing. As soon as the appraisal is finished, request a full copy (including sketch, maps, etc.) from the lender.

I believe it is important that you obtain a second opinion of value (not necessarily a full second appraisal) to protect your interest. I have come across many people who paid too much money for their home, despite having an appraisal at the time they purchased their home. Take a look at this article Your Rights - Appraising Real Estate Appraisers and Appraisals - I think this article is very telling. Your Realtor® should prepare a Comparative Market Analysis ("CMA") that shows all of the comparitve & recent sales in your neighborhood. Your Realtor® should give you a full copy of his/her "CMA." If your Realtor's® "CMA" differs greatly to that of the appraisal - ask some questions. I realize that you probably really want the home, as many buyers allow their emotions to take over, but do you want to pay more for the home than it is worth? What happens if you have a health crisis, lose your job or have to relocate? I've seen it over and over again; people paid too much for their home and then they can't sell it because they owe the bank more than their home will sell for. Be careful and be an informed buyer!

Take a look at the links related to appraisals on the right side of this page - these links offer a wealth of information.

Here is a sample 1004 Uniform Res Appraisal Report.pdf which will give you an idea of how the lender expects the appraiser to do his/her job. This report is given to the lender, usually with additional addendums. Please Note: The sample appraisal is used for informational purposes only and should not be used for any other purpose.

Ohio is not a mandatory licensure state. This means that appraisers are not required to be licensed, certified, or registered with the Division in order to perform appraisal work in Ohio .