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. However, appraisals do not really give you the full picture of the market value of a property. The main purpose of a real estate appraisal is to assure lenders that the property for which the loan is being secured is worthy of the loan amount.
Usually, lenders have their own specific appraiser assigned to properties in your area. But, you can also choose your own real estate appraiser from a list of appraisers offering their services. 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. The common thing between them is that they 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. 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.
The appraiser assigns a value to a property that is usually determine by considering the prices of similar properties in the area that are sold recently. 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. The fees charged by real estate appraisers are known in advance. IF no estimate is given by your real estate appraiser, then you should avoid that appraiser. A real estate appraiser chosen by the lender will also be paid by the lender’s funds for completing a transaction.
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.