Home Appraisal versus Assessment

Note that an appraisal is different from an assessment. Many local Governments determine property's assessed value to calculate property taxes. Lenders typically use an independent home appraisal as part of the mortgage process for a refinance loan. For a home purchase loan, lenders may consider the lower of purchased price or appraised value.

What Influences Home Value?

An independent appraisal could consider either or both of the following factors

• The Homes Nearby What was the price of the house down the block? Are prices of surrounding properties rising or falling? The sale prices of other houses in the neighborhood figure into the value of a property.
• The Home Itself What it would cost to rebuild the home? What is the condition of the home? How much value do enhancements and special features add?

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