New real word. One new real estate word, today’s word is appraisal seems kind of easy, and we think we all know what it means, but let’s clearly define it and ensure we’re on the same path and we’ll use it in a sentence for you. An appraisal is a written justification of the price paid for a property primarily based on the analysis of comparable and or similar homes that are nearby. OK, that’s cool. So let’s use that word in a sentence. And appraisal was recently conducted on the property and it met value.
All right, so who orders the appraisal? How much do they cost? Well, the answer is it depends. But in a situation where you’re purchasing a home, the appraisal is going to be ordered directly by your lender.
They’re going to request it and might go through this network of appraisals and appraisal management company that’s going to send out and select to that correct person is maybe you’ll receive an appraisal waiver, a waiver, meaning you don’t need an appraisal for the property because you live in such a place that there is enough comparables and the homes are similar enough or homogeneous in nature that you do not need an appraisal on the property, probably because you’re putting down a substantial amount and the lender doesn’t feel there is.
A reason to do it because there’s not abnormal risk involved for them. They feel they understand the collateral in which is being protected. So that’s how you use the word appraisal.
I kind of used a few ways. I talked about a couple of things real close to it. Now you’re fully informed on the word appraisal. Well. For us today, hey, now I’m back.