House appraisal, real estate valuation or real estate appraisal is the procedure of ascertaining an estimate of value for a particular property. Because real estate deals often involve many similar properties, appraisals are necessary to ensure that the transaction proceeds fairly and dependably. Real estate appraisals are also carried out periodically to determine the market value of properties that have been on the market for a long period of time, usually between six months to one year. Because each property is individually unique, unlike corporate shares, each transaction must be priced similarly. In other words, a house must be appraised to realize fair market value.
Appraisals are often used by sellers, brokers and agents who require unbiased information regarding the market value of properties they are considering for sale. For instance, if a buyer or seller requires information regarding comparable homes in the neighborhood, a house appraisal will give an idea of what similar homes may have sold for in the past. The information provided can include details such as the selling price, style, floor plan, amenities, condition, taxes and mortgage rates. Real estate agents and brokers who use this type of appraisal service need to ensure accuracy; otherwise, a client will not feel comfortable with the information provided. Real estate appraisers perform a variety of services to obtain this information.
During a house appraisal, the appraiser or appraisers gather surrounding information to evaluate the property based upon its current condition. The information gathered includes the square footage, condition, quality of repair, age, recent trends in maintenance and other aspects relevant to determining its value. The information also includes the location of the property, whether it is in a good location or an area of concern. The appraiser also uses comparable homes in the surrounding area and studies how well the home in question matches up to these homes.
In order to make an accurate valuation, the appraisal must be comprehensive. When it comes to the appraisal of the subject property, the appraiser will have many things to take into consideration before making a final determination. The appraiser needs to consider such things as the amount of money that was paid toward the mortgage on the subject property, any improvements that were made and any recent sales in the area. These things will greatly affect the final value of the appraisal.
Most appraisers will require a buyer to complete a Deed-in-Lieu of Trust prior to providing the final appraisal. This document provides the lender with additional information about the assets of the homeowner. When a Deed-in-Lieu of Trust is provided, lenders can see what the homeowner may be able to sell them through any process that they have in place. Some lenders may require additional information from the buyer such as tax returns and credit reports.
Many times, homeowners do not realize the importance of the services of an appraiser. In order to get the best possible deal on a home, it is wise for the buyer to have an appraisal performed. If a Deed-in-Lieu of Trust is provided by the lender, it is also beneficial for the appraiser to see what the value of the property is. An experienced appraiser can better understand what a reasonable asking price for the property would be. Read more now for further information.