Why You Need Real Estate Appraisal
If you want to sell your property at its full value or if you want to purchase a property less than its full value, then you need to have an accurate real estate appraisal. However, appraisals do not really give you the full picture of the market value of a property. The main purpose of a real estate appraisal is to assure lenders that the property for which the loan is being secured is worthy of the loan amount.
Usually, lenders have their own specific appraiser assigned to properties in your area. However, you can choose your own real estate appraiser from the list of appraisers that you offers their services in your area. If the lender is comfortable with the appraiser, then the loan application will be processes more quickly.
If you are looking for a good real estate appraiser, you will need someone who has full details of what aspects to consider in the evaluation of the property’s value. Theses details include the local real estate sales data, property features data, and an estimate of how low it is taking for similar properties in the area to be sold. The appraiser will also consider property features that include special improvements, unique architectural characteristics, and the quality of road accesses. The lender will require an agreement to maintain the private road if there is access to one.
You should not think of real estate appraisers as home inspectors. Their jobs are not the same. The common thing between them is that they look at properties. But, an inspector does not try to determine the value of the property but finds flaws with it. The inspector examines whether the house is up to code or if it has damages that need repair while an appraiser is there to figure out the worth of the property.
How a real estate appraiser assigs a value to a property is by comparing the prices of similar properties that were recently sold in the area. If a property needs repairs or code upgrades then the property value is discounted and the appraiser also checks if the property has a considerable revenue generation characteristic. The fees charged by real estate appraisers are known in advance. Be wary of real estate appraisers who cannot give you an estimate in advance. But, if the lender has chosen the appraiser, then the lender’s funds will e used to pay for the transaction completion.
It is not only in buying or selling a property that you need the services of a real estate appraiser. Other situations when you will need the services of a real estate appraiser is an estate property is inherited by many individuals or if property taxes has to be calculated or re-calculated.