Regardless if you are selling a property at full value, or buying one at a value that is lesser than the full value, having a truthful real estate appraisal becomes a crucial aspect of that transaction. But, this does not mean that the appraisal is an actual picture of the property’s value in the market. The main objective of real estate appraisal is for assuring lenders that a property is worthy of the amount of the loan, if such property is being used to secure a loan.
In a lot of cases, lenders will have had assign a specific appraiser to the properties that are in your area. You are sometimes able to choose an appraiser of your liking from a list in some cases. The more the lender is acquainted with the property appraiser, the loan application will be processed even faster.
If an appraisal goes accordingly, it will involve all the details of the criteria that was based on evaluating the value of the property. The data the is going to be presented will usually be of property local sales data, features data, and an estimate of the average time it takes to sell similar properties in the area. The features of the property may be altered to accommodate unique architectural designs, special improvements, or improve road accesses. If within the vicinity of the property lies a private road access, usually the lenders will want an agreement on keeping the private road access intact.
A usual misbelieve is that of inspectors and appraisers being the same and synonymous. But in fact, inspectors and appraisers have vastly different jobs. The only common thing that the two jobs have is that they deal with properties. The inspector is tasked with finding any flaws that are present on your property as opposed to determining its value like what an appraiser would do. Just remember that the inspectors are tasked with inspecting your property for any damages and if it is in accordance to the codes while appraisers are there to see how much it is worth.
The number the appraiser comes up with is reliant to the prices of like properties in the same area that got sold, code upgrades and repairs will reduce the property’s value, and considering the potential revenue generation properties that the property may posses. Usually the appraisal fee will be disclosed in advance. Keep a watchful eye for any appraisers with the inability to give you an estimate. But if the lender has their own lender, the appraiser will be compensated by the lender’s funds.