You’ve found your dream Tulsa home. Now it’s time to cross all your “T’s and dot all your “I”s before it’s all your own. And what’s one of the first items on your closing checklist? The home appraisal. So, what exactly is that?
Essentially, the home appraisal creates a value assessment of the house structure and property. A certified third party conducts the appraisal. Lenders use the final report to determine whether the home is priced appropriately or not.
During an appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the Tulsa home in question. He or she factors in a variety of things, including the home’s floor plan functionality, condition, location, school district, fixtures, lot size, and more. They usually make an upward adjustment if the home includes a deck, a view, or a large yard. The appraiser also compares the home to several similar homes that sold within the last six months in the area.
The final report must include a street map showing the property and the ones used to compare it. It also includes photographs of the interior and exterior as well as an explanation of square footage calculation. Finally, market sales data, public land records, and more make up the rest of the report.
After completion, the lender uses the information found in the appraisal to ensure that the property is worth the amount they are investing. This acts as a safeguard for the lender cine the home essentially becomes collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed.
