Real estate appraisal is the process of estimating the value of a house or property before it is put in the market for selling or mortgaging. The appraisal process is very important because it gives the market value of the house.
The real estate appraisal is also used by banks to give them an estimate of the money to lend to their borrowers. The process of estimating the value of a certain property is done by an appraiser. The appraiser is very experienced not only in terms of education but also possesses knowledge in property valuation. They are also fair meaning they do not give any favored judgement. Banks and real estate agent are some of the companies that usually employ appraisers. There are also appraisers who run their own appraisal companies.
The property that is being valued, must be in an area well known by the appraiser. The familiarity allows the appraiser to know all the pros and cons that might affect the property value. It is the work of the appraiser to determine if property is owned legally by checking the public records. The real estate appraiser is also required to take pictures of both the interior and the exterior of the house.
Comparing the houses with others in the area is also done by the real estate appraiser to determine the property value. A full report on the findings is then written down and all the information regarding the property is collected and stored by the appraiser. The appraiser also takes into consideration the nearby features that might increase or decrease the value of the property. Using the information collected, the appraisal will then give a calculated estimate of the house.
There are many similarities between different residential appraisals. They are all trying to get the fair value of a certain property. To be able to determine the value of a given property, the appraiser will take into consideration some affecting factors during the appraisal process. A home owner might change the value of their property after learning about these affecting factors. The value determining factors include the size of the house, the type of the house, the depreciation of the house, age of the house, the house features, the renovations and the repairs made to the house.
For a free appraisal on the house, there are two options. Option one involves using a real estate agent to value the house. The second option is by the use of the many available free online appraisal websites. The online appraisal is very convenient because it is fast and the only requirements needed are the house address and some extra features and you get the market estimated value of the house.