The Appraisal process is an uncommon experience for most people. Here are some common misconceptions about the process and the results. The primary purpose of an appraisal is to make sure the buyer doesn't pay too much for the house. Lenders don't like overpriced property any more than they like lending money to irresponsible borrowers. This is why the appraisal happens before the lender grants final approval of the buyer's loan.
Appraisers use a specific formula to figure out exactly how much each home is worth.
Good housekeeping can improve a home's valuation. They notice signs of neglect like cracked walls, chipped paint, broken windows, torn carpets, damaged flooring, and appliance wear and tear. Anyone can be an appraiser. Appraisers have no obligation to reveal home defects to buyers. No such obligation exists for non-FHA mortgages.