What Does a Real Estate Appraiser Do?
If you want to sell your property at its full value or if you want to purchase a property less than its full value, then you need to have an accurate real estate appraisal. However, appraisals do not really give you the full picture of the market value of a property. 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.
To appraise properties in your area, most lenders have their own specific real estate appraiser. But, you can also choose your own real estate appraiser 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. Real estate sales data, property features data, and an estimate of the time it takes to sell similar properties are the details that the real estate appraiser should know. 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.
Real estate appraisers should not be mistake for home inspectors. Their jobs are not the same. The only thing common between the two is that they both look at properties. The job of a home inspector is not to determine is value but to find flaw is 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.
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. Appraisers’ fees are generally known in advance. IF no estimate is given by your real estate appraiser, then you should avoid that appraiser. 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. 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.