One of the most common questions asked by homeowners interested in selling or refinancing their home is, "How much is my home worth?"
To sell or refinance your home, the lending institution will need to hire an appraiser to determine the value of your home.
What is a home appraisal?
An appraisal is the act or process of developing an opinion of value; an opinion of value. (USPAP, 2010-2011 Edition, pg. U-1) It may be said that value is the present worth of all rights to future benefits, arising out of property ownership, to typical users or investors. An appraisal report is usually a written statement of the appraiser’s opinion of value of an adequately described property as of a specified date. It is a conclusion which results from the process of research and analysis of factual and relevant data.
The licensed or certified appraiser, by reason of professional training, experience, and ethics is responsible for furnishing clients with an objective third party opinion of value, arrived at without pressures or prejudices from the parties involved with the property, such as an owner or lender. The appraiser has a heavy personal and professional responsibility to be correct and accurate in opinions of value. Otherwise, the appraiser’s clients may easily suffer loss and the appraiser’s professional reputation may also suffer.
By the Numbers: The Devaluation of Black-owned Homes and Majority Black Neighborhoods.
On June 1, 2021- the 100th anniversary of the Tulsa Race Massacre - President Biden announced the launch of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative to combat bias in home appraisals.
PAVE is dedicated to ending bias in home valuation. PAVE is comprised of 13 federal agencies and is co-led by US Department of Housing and Urban Development Sec. Marcia Fudge and White House Domestic Policy Council Advisor Susan Rice.
The PAVE Action Plan offers detailed information on property appraisals and valuation.
Topics covered include the following: