Why You Need Real Estate Appraisal

22 Aug

Having an accurate real estate appraisal is an important aspect of either selling a property at its full value or purchasing a property at 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 most of them simply choose 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.

If you are looking for a  good real estate appraiser, you will need someone who has full details of what aspects to consider in the evaluation of the property's value.  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.  Special improvements, unique architectural characteristics, and the quality of road accesses are the property features that are considered.  If the property has access to a private road then the borrower is required to agree to maintain the private road by the lender.

You should not think of real estate appraisers as 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.  The inspector examines whether the house is up to code or if it has damages that need repair while an appraiser is there to figure out the worth of the property.

How a real estate appraiser assigns 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. Check Honolulu land appraiser to learn more.

It is not only in buying or selling a property that you need the services of a real estate appraiser.  An estate property handed down to many individuals will need the services of a real estate appraiser and in situations when property taxes has to be calculated or re-calculated. Check real estate appraisal Honolulu for more info.

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