The Importance of a Real Estate Appraiser
Having an accurate real estate appraisal is an important aspect of either selling a property at its full value or purchasing a property at less than its full value. Don’t think of a real estate appraisal as the full picture of the property’s full 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.
Usually, lenders have their own specific appraiser assigned to properties in your area. But most of them simply choose from a list of appraisers offering their services. If you want your loan application to be processed in a quick manner, then you should either use the lender’s real estate appraised or choose someone whom the lender is comfortable with.
The best real estate appraiser is someone who has full details of the aspects considered in the evaluation of the value of a property. Theses details include the local real estate sales data, property features data, and an estimate of how low it is taking for similar properties in the area to be sold. The appraiser will also consider property features that include special improvements, unique architectural characteristics, and the quality of road accesses. If the property has access to a private road then the borrower is required to agree to maintain the private road by the lender.
You should not think of real estate appraisers as home inspectors. Their jobs are not the same. These two types of jobs have something in common and that 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. 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.
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. Appraisers who cannot give you an estimate should be avoided. 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. 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.