When you buy or sell a home, it is important to search for a good real estate appraisal services to benefit from their expertise. Regardless of what the other party claims about using their person, you would rather pay more and be sure the results are true.
There are some other legal reasons to consult an appraiser in court cases, and the top reason is for the settlement of a divorce and this is to ascertain the value of property to ensure equal division. Property appraisal services can also offer real estate loan underwriting services. The ever decreasing value of properties is only one factor that exacerbates the risk for lenders; the financial stability of the borrower is another factor in these trying times. Typically, residential appraisals depend on one of two methods of determining the value of an asset, the direct sales comparison approach, and the cost approach.
In the cost approach, the price of replacing the building as well as making certain improvements is estimated, where the value of the site is being added, and the estimated depreciation is deducted. In the Direct Sales Comparison Approach, also referred to as the Market Data Approach, the appraiser determines the value of similar properties that were recently sold on the local market and, through a suitable process of adjustment, estimates the fair market value of the property in question-based on these comparable sales.
It is important that you know what you will see on an appraisal report. An appraiser should include in the report about the issues considered harmful to the property’s value, like; little access to the property, and maintenance problems.
When a residential property is appraised, there are two common methods to do this and one is the sales comparison approach. There are usually no properties alike so the appraiser looks for recently sold properties with the most similar characteristics and adjusts the subject property to get it inline with the comparable property.
This method is often used in new properties and this enables the appraiser to know how much money is used to build the house. Loan institutions would not want a property that is difficult to sell if ever your property has been foreclosed. If the appraisals are low, there are steps you can take to increase the market value of the property to meet the standards of loan institutions.
Remember that real estate appraisal can determine the outcome of your mortgage application. Consider the condition of the property before you apply for a mortgage.
Try to look for yourself at the location, the condition of the foundation and you can seek the services of an independent home appraiser in order to evaluate the true market value of the property prior to applying for a mortgage. One of the most reliable sources of information on property appraisal companies is the Internet.