House appraisal, real estate valuation or real estate appraisal is the procedure of formulating an estimate of value for a property. Real estate appraisals are often required when a house is bought or sold, and is done by certified real estate appraisers, who are usually hired by the seller, the buyer or both. Most real estate transactions involve appraisals as they happen infrequently and each property is unique, unlike stock shares, which are almost identical and usually traded every day. The process of getting an appraisal is fairly straightforward and easy, but many people do not understand why it is important.
There are two reasons why a house appraisal is important. First, it allows the parties involved to know the market value of their property. This is important in the planning of buying or selling a house. If you were going to buy a house at a certain price, then finding out the market value could help you decide if your offer is acceptable, since the offer that you make could be higher than the true market value. Second, home appraisal ensures the validity and quality of the property.
Home appraisal is done by certified appraisers from several accredited institutions who meet or exceed the standards of the National Association of Appraisers. Appraisal certificate requirements vary from state to state. Typically, most states require home appraisals to be conducted by licensed appraisers who have met a specific educational requirement and have passed a test covering state law. Certified appraisers who successfully meet these requirements are referred to as "MSAs".
A typical situation requiring the services of a real estate appraiser is when the buyer is buying a house "as is". Usually, this means that the buyer has inspected the house, noted any problems and decided how much money they can reasonably spend on the house. On the other hand, when the buyer is planning to hire an appraiser for this type of situation, they usually will already have an agent in place who will be responsible for brokering the deal between buyer and seller. In this case, the agent does not represent the seller, but instead provides the buyer with the information from the seller. It is the responsibility of the real estate appraiser to do what is in the best interest of the seller and provide an accurate appraisal which the buyer can rely upon.
The next scenario is one in which the house was inspected by a competent appraiser, but the buyer decided to hire their own appraiser. In this situation, the buyer would have received a substantially different appraisal report for the same subject property because of the biased nature of the inspections. For example, the inexperienced real estate appraiser will typically under-estimate the house based on the fact that they have never conducted an inspection before and have no knowledge of the condition of the property. Their report, therefore, will significantly under-estimate the house value.
Whether you are a buyer or seller, you must understand that the real estate transaction can have a significant impact on your future. If you choose to use an appraiser, you must understand that the results of that choice can have a profound effect on the final market price of your home. In order to ensure that you get an accurate market value estimate for your home, you should always hire an experienced, respected appraiser who has a track record of obtaining fair market values for comparable sales in your area. Learn more from this trusted realtor's website.
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