An appraiser is a licensed professional who specializes in property value assessments. The appraiser will measure the home from the outside to determine square footage and also each room inside. They take notes on the homes layout, number of bedrooms, bathroom, ect.
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Surprisingly items such as new roof, new furnace and finished basements do not add much value to the home. However, many loan programs require a roof and furnace to be still within its useful life. The value of the home is found by using the cost approach, the compassion approach, and/or the income approach. For more information on these approaches visit our post here. Once the value is established, the report is submitted to the bank for their review.