What Does a Real Estate Appraiser Do?
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. Real estate appraisal is done so that lenders are assured that the property for which the loan is being applied for is worth the amount being loaned.
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. 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. Special improvements, unique architectural characteristics, and the quality of road accesses are the property features that are considered. If the property has access to a private road then the borrower is required to agree to maintain the private road by the lender.
Real estate appraisers is not the same as home inspectors. They don’t do the same jobs. These two types of jobs have something in common and that 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 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. Real estate appraisers usually make their fees known in advance. Be wary of real estate appraisers who cannot give you an estimate in advance. A real estate appraiser chosen by the lender will also be paid by the lender’s funds for completing a transaction.
A real estate appraiser is necessary in situations other than selling a property. An estate property handed down to many individuals will need the services of a real estate appraiser and in situations when property taxes has to be calculated or re-calculated.