Tips for Undertaking a Real Estate Appraisal Real estate appraisal is a fairly done procedure to determine the market value of a certain building before it is mortgaged or sold. The real estate appraisal is very important because it will help determine the true value of a house. The banks use the real estate appraisal […]
Tips for Undertaking a Real Estate Appraisal
Real estate appraisal is a fairly done procedure to determine the market value of a certain building before it is mortgaged or sold. The real estate appraisal is very important because it will help determine the true value of a house.
The banks use the real estate appraisal to help them decide whether the amount being asked by a loan borrower is just. An appraiser is responsible for the valuation process of a house or building. The appraiser is very experienced not only in terms of education but also possesses knowledge in property valuation. The appraiser is also forbidden by law in giving property appraisals that may favor one side. Most of these appraisers work for different companies including banks and real estate agents. There are also independent or self-employed appraisers.
The appraiser will usually valuate the property within a familiar area. The familiarity allows the appraiser to know all the pros and cons that might affect the property value. The real estate appraiser will then check the public records to determine that the property is legally owned. The real estate appraiser is also required to take pictures of both the interior and the exterior of the house.
To determine the value of the property, an appraiser will compare the house with others in close proximity. A full report on the findings is then written down and all the information regarding the property is collected and stored by the appraiser. The real estate appraiser will also include surrounding features that affect the value of the property like closeness to a mall, near a police station, near a highway and so on. The appraiser with then give an estimate of the property by using the information they have gathered.
Most of the real estate appraisals are similar in one way or the other. They are all trying to get the fair value of a certain property. The real estate appraisal process can be broken down into major factors that the appraiser will be keen on to determine the value of the property. A home owner might change the value of their property after learning about these affecting factors. The value determining factors include the size of the house, the type of the house, the depreciation of the house, age of the house, the house features, the renovations and the repairs made to the house.
For a free appraisal on the house, there are two options. Option one involves using a real estate agent to value the house. The second option is by the use of the many available free online appraisal websites. Using the website appraisal is easier because you only need to provide them with the house address and also some few features of the house and then you generate an estimate of the current value of the property.