When to get a Bank Appraisal vs a Real Estate Appraisal
When getting ready to get your home appraised, it's important to know the difference between a bank appraisal and a real estate appraisal. Sometimes, you might need an appraisal value to sell your home; other times, you might need one to settle a legal dispute. Knowing which type of appraisal report is right for your situation is crucial.
Bank Appraisal vs Real Estate Appraisal: What's the difference?
To put it simply, bank appraisals are mandatory, and real estate appraisals are optional. Lenders require bank appraisals when buying a house and taking out a mortgage loan. Homeowners typically order real estate appraisals for non-lending purposes. They are generally used to determine the value of a property for specific reasons, like preparing to sell or re-evaluating their taxes or insurance.
Contact a licensed appraiser in South Florida Today!
Appreeze provides a variety of qualified appraisal services in South Florida. They streamline the process through a virtual appraisal platform that allows homeowners to get their homes appraised directly through their smartphones. With fast turnarounds, high-quality reports, and an easy request service, Appreeze makes obtaining an appraisal easy. Order your appraisal today!
Bank appraisals
As mentioned above, lenders require bank appraisals during the home-buying process. The lender uses the bank appraisal to assess the property's value and determine whether someone is approved for a loan. The appraised value also helps determine the interest rate and down payment required to purchase the property.
Mortgage lenders' and appraisers' roles in bank appraisals
During a bank appraisal, the mortgage lender usually hires a licensed appraiser to conduct the property appraisal before a home purchase. The appraiser will analyze the traditional factors the USPAP requires, including square footage, condition, location, and more.
Once the appraiser has obtained the relevant information and determined a valuation, they'll write up a report and send it to the lender. The lender can then determine if the buyer qualifies for financing.
Real estate appraisals
Homeowners choose to get real estate appraisals for various reasons. Situations where a homeowner might need one include property refinancing, estate planning, PMI removal, divorce settlements, and more.
They're most commonly used to determine a home's value before listing it for sale. These are known as pre-listing appraisals. However, there are a few other ways to determine a listing price, like looking into comparable sales in the area. That's why real estate appraisals are typically optional in these situations.
During the real estate appraisal process, the licensed appraiser has a bit more flexibility in the features they assess. They can include the assessment of unique features and the potential for future renovations. They also typically offer several methods of conducting the appraisal. These include:
- Desktop appraisals
- Traditional/In-person appraisals
- Hybrid appraisals
Need a real estate appraisal?
Appreeze connects you with experienced, qualified appraisers who utilize new technology to conduct GPS-authenticated, appraiser-directed video appraisals. Get your house appraised directly through your smartphone today!
