The Importance of a Real Estate Appraiser
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. But, you should not think that an appraisal is a full picture of a property’s market value. 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. But, you can also choose your own real estate appraiser from a list of appraisers offering their services. A loan application is usually processed faster if the lender is comfortable with the real estate appraiser.
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. 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. These two have different 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 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.
When a real estate appraiser determines the value of the property, he also considers the prices of other 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. Appraisers’ fees are generally known in advance. IF no estimate is given by your real estate appraiser, then you should avoid that appraiser. 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. He is required if an estate that includes property is passed on to many individuals or if property taxes are being calculated or re-calculated.