Appraisal….One of the “big three” as far as typical contingencies go in the home buying process. An appraisal is the act or process of developing an opinion of value. The valuation is done using a systematic procedure wherein the appraiser derives a market value for the home in question. What influences the derived value? Social, economic, governmental and environmental forces are considered as well as local market conditions such as supply and demand. While factoring these extraneous elements in the appraiser looks closely at property characteristics that might impact the value. The finishes, the condition of the property, the size of the property etc. These property-specific elements are examined and compared to that of competitive properties. Talk to your Realtor about the appraisal process. He or she should be able to support the purchase price via a comparable property analysis thereby ideally limiting potential appraisal issues.
Mott & Chace Sotheby’s International Realty
100 Exchange Street
Providence, RI 02903