In the United States, a home appraisal is an important step in a real estate transaction.

When do I need a home appraisal?

If a homebuyer takes out a loan to buy a home, a home appraisal is a necessary step.

The appraisal of the house will ultimately determine the amount of loan the bank will give to the lender. But the value of the house is not appraised by the bank, it is appraised by a third party organization, the appraisal company.

If the lender suspects that the valuation is too low, he or she can apply for a second valuation. Generally, even if the lender is willing to pay for a second appraisal, the bank will not change its original decision.

How much does a house valuation cost?

According to Home Advisor, most homeowners in the U.S. pay about $287-$373. Of course, fees vary depending on the region, with generally higher fees on the east and west coasts and lower fees in central cities.

In addition, each home appraisal report is valid for four months and requires a new appraisal upon expiration.

What are the principles of home valuation?

Generally speaking, the basic principles of real estate valuation are as follows:

The transaction prices of similar houses in the area in the recent period are important factors in assessing the value of a house, including the price of the local surface.

The price of building a similar house plus the price of land, i.e. the cost of building a similar house on the same piece of land, is calculated using the prevailing prices of construction materials and labor, and depreciated according to the age of the house.

If the object of valuation is an investment house, the rental price of the house is referred to. Assuming the house is rented, how much rent can be charged.

Combining the above three factors and considering the local economic development, the home appraiser will evaluate the value of each property.

The bank will grant the appropriate amount of loan based on the appraiser's appraisal.

Do I need a home appraisal to calculate my property taxes?

In the United States, the amount of property taxes is the value of the home multiplied by the property tax rate, and the amount of property taxes changes from year to year.

After you purchase a home, the first time you pay property taxes, it is the purchase price of the home, multiplied by the local property tax rate.

The amount of property tax varies from year to year, as the government fine-tunes it each year based on fluctuations in local home and land prices.

There is no home valuation involved in the entire process.

In order to protect the interests of long-term property owners, the government makes a small adjustment to the property tax each year without any change in the ownership of the home, in California, for example, the adjustment is only within 2%.

This means that the longer a house is held, the lower the cost of holding it and the more beneficial it is to the holder.