Guide To Understanding A Residential Appraisal

If you are borrowing money to purchase the home in Southern Arizona and using the AAR contract, your offer is contingent upon the home appraising for at least the sales price. Lenders are required to obtain an appraisal, prepared by an impartial and unbiased appraiser, and use it as the primary tool for assessing the sufficiency of your collateral. Your lender will order an appraisal and charge you it in advance (typically $300 to $400). This fee is in addition to any other fees you pay your lender.
The purpose of this brochure is to help you understand the residential appraisal. After reviewing this brochure, you will understand the definition of a credible appraisal, the appraisal process, elements of a credible appraisal, the importance of appraiser independence, and how to proceed if you feel that a correction needs to be made to your appraisal report.
The following resources guide has been created by the Appraisal Foundation, and co-branded by the National Association of Realtors®.