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. However, appraisals do not really give you the full picture of the market value of a property. 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. However, you can choose your own real estate appraiser from the list of appraisers that you offers their services in your area. 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. 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. 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. 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 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.
How a real estate appraiser assigs a value to a property is by comparing the prices of 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. 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. If the real estate appraiser is someone chosen by the lender, it is usually the lender’s funds that pays for the completion of the 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.