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. 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. A loan application is usually processed faster if the lender is comfortable with the real estate appraiser.
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. 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. Property features may 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.
Real estate appraisers should not be mistake for 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 figures out whether the proeprties meet codes or have damages which appraisers are there to figure out what the properties are each worth.
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. Be wary of real estate appraisers who cannot give you an estimate in advance. A real estate appraiser chosen by the lender will also be paid by the lender’s funds for completing a transaction.
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.