What Does a Real Estate Appraiser Do?
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.
Most lenders will have their own real estate appraiser that they assigned to appraise properties in your area. But most of them simply choose 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. 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. Special improvements, unique architectural characteristics, and the quality of road accesses are the property features that are considered. The presence of private road access will prompt a lender to require an agreement to maintain the private road.
Real estate appraisers is not the same as home inspectors. These two have different jobs. The common thing between them is that they look at properties. The job of a home inspector is not to determine is value but to find flaw is the property. The inspector figures out whether the proeprties meet codes or have damages which appraisers are there to figure out what the properties are each worth.
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. They discount the property for needed repairs or code upgrades and take into consideration a considerable revenue generation characteristics the property may have. 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. 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.