Most homeowners are likely familiar with home appraisals. An appraisal is a determination of a property’s value. It reveals whether a house is priced accurately. In the context of acquiring a mortgage, a home appraisal essentially tells the lender how much to loan you to buy the house.
Banks need to know a house’s true value so they don’t loan homebuyers more than the house is worth. If a bank did this, and the buyers later defaulted on their mortgage and had to foreclose on the house, the bank would lose money. Appraisals are therefore essential parts of property sales. But what does appraising actually involve, and how does one become an appraiser?
Individuals must take appraisal license courses to become state-licensed appraisers. Fully licensed appraisers assign monetary value to a property based on the lot size, surrounding neighborhood, style and age of the home, square footage of the finished and unfinished areas of the home, and positive features such as garages, central air conditioning systems, fireplaces, and so on. The appraiser will likely also compare the property to other, similar properties nearby in determining the property’s value.
At the end of the process, the appraiser will produce a report that includes the value of the property, a description of the home and its deficiencies and upgrades, and comparisons with nearby properties. Your lender will generally abide by the appraised value of the property and not loan you more than that.
In Nevada, aspiring appraisers must complete rigorous training courses in appraisal principles and procedures, market analysis, sales comparisons, report writing, and more. Las Vegas’s Key Realty School is a top-rated real estate school offering appraisal license courses. Visit KeyRealtySchool.com to learn more.