It is not uncommon for a lending institution to ask for a home appraisal either when the home is being purchased or when a homeowner wishes to refinance a home. The home appraisal is simply a valuation of the current market price of a home and it takes many different factors into account. It is important to distinguish one from a home inspection; they may be offered by the same company that they are not the same thing.
Many people believe that evaluation of the home lies largely on the condition of the house itself, this is not necessarily true. Often a large part of what determines the market value of a home is the existing condition of the real estate market and the area in which the home is located. You may own a beautiful home but if real estate prices are down in your area you may find that their appraisal is for much less money than you expect.
A company or individual that provides an appraisal should be a disinterested third party from either the lending institution or the owner of the property. If you have concerns about who is doing your appraisal it is best to bring them up with the lending institution prior to having one done. Generally the results of it are valid for six months so if you have concerns about potential bias it is better to speak earlier than later.
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