3 Appraisers Tips from Someone With Experience

  • admin
  • July 5, 2018
  • Four Major Steps Used in the Real Estate Appraisal Process

    You might happen to own or want to purchase a property and you want to do some valuation on it. First of all you will need a real estate appraisal company for the job. The process where an option of the true market value of a home is developed id known as real estate appraisal. Some people will also refer to it as the unbiased estimate of the true market value of what a certain home is worth. This is always done when lenders order for an appraisal during the mortgage loan process. This ensures that the true market value of a certain property is achieved and that the client is not overcharged or undercharged. In real estate appraisal there are four main steps one needs to take to determine the true market value of a home. They are as follows.

    A bank order will be the first step you will take. A bank order have the details needed in real estate appraisal. The name of the institution that will be aiding you with the loan will be there hence helping to initiate the process of appraisal. A bank order is very important hence you should go to one that will service you as quickly as possible. Go for well known banks around you and those that have serviced mortgage loans before.

    The second step comes in handy after the bank order has been released. This will be inspection of the property. A thorough inspection will be done on the home that you need to buy. The inspection will be done at a time when the agents selling the home and the appraiser will agree on. When the inspection is being done the appraiser walks through the whole compound, in and out of the house noting conditions of the property and even taking pictures.

    Thirdly, the appraiser will do a comparison of the inspected home with those from their recent records. This will give them the sales information that they require and help them compare those homes to the subject property. This will also enable them see how it builds up a competition against them. Lot size, lot location, landscaping, interior finishes and proximity to services are some of the factors that are affected.

    The last step will be giving the final appraisal report. This comes after a true market valuation of the property is done at that particular time. Over time the value of the property will either appreciate or depreciate. Some of the things that are in the report given to the client include the value of the home and the address of the compared homes plus their description. In conclusion, new home buyers are able to determine the value of the home because of real estate appraisal.

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