What is the difference between an Appraisal and a Home Inspection?
An appraisal and a home inspection serve different purposes and focus on different aspects of a property.
An appraisal is an evaluation of a property's overall value and takes into account factors such as the location, size, condition, and amenities of the property. The purpose of an appraisal is to determine the fair market value of a property, which is the amount that a willing buyer would pay and a willing seller would typically accept.
On the other hand, a home inspection is a detailed examination of a property's physical condition and systems, such as the electrical, plumbing, and HVAC systems. The purpose of a home inspection is to identify any potential issues or defects that could affect the safety or livability of the property. Home inspections are typically requested by buyers during the purchasing process and can be used to negotiate repairs or a lower purchase price based on the inspection findings.
Can an Appraisal help me remove PMI?
Yes, an appraisal can help you in the process to remove Private Mortgage Insurance (PMI).
In general, PMI can be removed from your mortgage once you have reached a certain level of equity in your home, typically 20% or more. You may need to request PMI removal from your lender and provide evidence of the increased equity in your home, such as an appraisal.
An appraisal can help determine the current market value of your home, which is one factor that can be used to calculate your equity. If the appraised value of your home is higher than when you first obtained the mortgage, this could help you reach the required equity level to remove PMI.
Once an Appraisal is performed, who owns the report?
Typically, the appraisal report is owned by the party who ordered and paid for the appraisal. In most cases, this is the lender if the appraisal was ordered as part of a mortgage application. However, if the appraisal was ordered by the homeowner or another party, they would own the appraisal report.
In some cases, the appraisal report may also be shared with other parties involved in a transaction, such as a buyer or seller in a real estate transaction or attorneys in a legal dispute. However, the ownership of the appraisal report remains with the original ordering party, and any further use or distribution of the report would need to be authorized by them or the appraiser who prepared the report.
It's worth noting that the information contained in an appraisal report is confidential and should not be shared without the express permission of the appraisal owner or appraiser, except as required by law or as part of a transaction.
What standards are used to calculate the square footage of my house?
Appraisers are required to follow certain standards of measurement when measuring the square footage of a house. The standards may vary slightly depending on the organization or association to which the appraiser belongs, but generally, the following guidelines are followed:
1) Only living space that is above grade is counted towards the square footage. This includes all finished areas that are accessible from the interior of the house, such as bedrooms, living rooms, and kitchens.
2) Finished areas that are below grade, such as basements, are not included in the square footage, but they may be noted separately in the appraisal report.
3) Unfinished areas, such as garages, storage spaces, and unfinished attics, are not included in the square footage, but they may also be noted separately in the appraisal report.
4) The square footage is measured from the exterior walls of the house, so it does not include any thickness of the walls themselves.
5) Only areas with a minimum ceiling height of 7 feet are counted towards the square footage. Areas with lower ceilings, such as crawl spaces or attics with sloping ceilings, may not be included.
6) Any areas that are not physically accessible, such as crawl spaces, are not included in the square footage.
These standards help to ensure that appraisers measure the square footage consistently and accurately, providing a reliable basis for determining the value of a property.
