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. Don’t think of a real estate appraisal as the full picture of the property’s full market value. 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.
To appraise properties in your area, most lenders have their own specific real estate appraiser. 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. Real estate sales data, property features data, and an estimate of the time it takes to sell similar properties are the details that the real estate appraiser should know. 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. They don’t do the same jobs. The only thing common between the two is that they both look at properties. When a home inspector looks at a property, it is not to determine how much the value is but he is actually looking for what is wrong with the property. It is the home inspectors job to check if building codes are followed and if there are repairs that need to be done in the property while the appraisers main job is to determine 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. Discounts to properties are given if there are repairs needed or there is a need to upgrade codes and the appraiser also looks for characteristics in the property that can generate a considerable revenue. Real estate appraisers usually make their fees known in advance. Appraisers who cannot give you an estimate should be avoided. But, if the lender has chosen the appraiser, then the lender’s funds will e used to pay for the transaction completion.
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.