Why You Need Real Estate Appraisal
The importance of real estate appraisal is seen in both selling a property at its full vale or buying a property less than its full value. However, appraisals do not really give you the full picture of the market value of a property. If a lender wants to know if the loan amount being secured is worthy, he usually needs a real estate appraisal, and this is what it is all about.
Most lenders will have their own real estate appraiser that they assigned to appraise 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.
Someone who has full details of the aspects considered in the evaluation of the property’s value is the best real estate appraiser to choose. These aspects in the evaluation of the property’s value include real estate sales data, property features data, and an estimate of how long it takes for similar properties to be sold. Property features may include special improvements, unique architectural characteristics, and the quality of road accesses. The presence of private road access will prompt a lender to require an agreement to maintain the private road.
Real estate appraisers should not be mistake for home inspectors. They don’t do the same jobs. The only thing common between the two is that they both look at properties. The job of a home inspector is not to determine is value but to find flaw is the property. The inspector figures out whether the proeprties meet codes or have damages which appraisers are there to figure out what the properties are each worth.
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. They discount the property for needed repairs or code upgrades and take into consideration a considerable revenue generation characteristics the property may have. Appraisers’ fees are generally 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.
You can also use the services of a real estate appraiser in other situations than buying or selling property. 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.