Your Idaho Real Estate Appraisal


Your Idaho real estate appraisal is an important and mandatory part of the home buying process, which helps to establish a property's market value. The market value is the likely sales price it would bring if offered in the open real estate market. Your lender will require an appraisal during the home loan transaction. Both the seller and buyer must depend upon the expert opinion of a complete stranger, who will be certified and Idaho state-licensed to determine the value of the property.

Remember, a home appraisal is not the same thing as a home inspection. While you'll want both as you have your heart set on a certain Idaho home for sale, they are two distinct transactions independent of each other. The inspection of the house is to spot any potential problems which the appraiser won't test, such as the heat and air, chimney, or if the plumbing is up to code.

Oftentimes, the lender will have a group of approved appraisers which will work with you during the process. This weeds out any un-licensed and un-certified appraisers doing the work. While the Idaho home appraisal is required by the lender, it is the buyer's responsibility, and will end up rolled into the mortgage costs at the time of closing.

There are two common appraisal methods used when dealing with residential properties. One is called the Sales Comparison Approach, where the appraiser estimates an Idaho home's value by comparing it to three or four other similar properties that have sold in the area. They'll consider finished and unfinished space, the age of the house and features such as the garage, fireplace, or basement.

The Cost Approach is used primarily with new property and is based on reproduction costs. Put simply, the appraiser determines what it would cost to replace the home if it were destroyed.

Here's some of what the appraisal report will likely contain:


  • The method used to determine the value of the Idaho property.
  • The size and condition of the house, along with permanent fixtures and a note of any improvements made upon the property and with what materials.
  • If the Idaho house has any structural issues like a wet basement or cracked foundation.
  • The appraiser will include notes about the surrounding area, with emphasis on new or established development, acreage & so on.
  • If there are applicable market trends in the area that can affect the home's value.

The appraisal amount includes the value of the Idaho house, including any permanent structures and the land which the house sits upon. The most important aspect of the home appraisal is that it determines the loan amount you can get to buy the property.

So, what happens when the appraisal comes in and it's much lower than the asking price from the seller? Well, the lender will not lend out more than what the home appraised for. Is it time to throw in the towel? Certainly not.

In an attempt to recover from a low appraisal, take a look at what may have caused it. If it's something that can be fixed by home repair, the appraiser can take a second go-around and make adjustments to the appraisal accordingly. Also, you can order a second appraisal by someone else-just be sure to use an appraiser from a list the lender will approve of. The buyer can also make up the difference in cash, or the seller can lower the price, especially if the home was overpriced or the value was inflated.

A home appraisal is more than just an added cost. It serves as protection for everyone involved in the transaction, and can help you stay informed every step of the way.

For additional information call (208) 571-7145 to speak with a knowledgeable agent.


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