Property appraisal, real estate valuation or property appraisal is the procedure of coming to an accurate judgment of value for a property. Real estate deals often require appraisals as they happen infrequently and each property is different, unlike corporate shares, that are traded almost daily and so are almost identical. There is considerable confusion as to what constitutes the most accurate or reliable approach, but the basic idea is that a property's value reflects all of its physical, economic, social and emotional characteristics. Appraisal is the scientific study of these properties and their market trends and patterns, and it is done by certified appraisers who are hired or employed by either individual or business clients to make such determinations. Read more now for more info.
The two major types of home appraisals are house appraisal and home inspection. The former is designed to give a completely accurate picture of a property, while the latter is designed to provide the owner with a good idea of the current market value of the property in question. Most lenders and financial institutions encourage home inspections because it is virtually impossible for a seller to make up for an error made in the home inspection. The major drawback to home inspections is that it usually costs several thousand dollars, and so a lot of sellers try to avoid it, especially when they are under tremendous financial duress.
One way to avoid problems with the home inspection is to have a certified appraisal report done on your property. Certified appraisers do not rely on subjective judgment as do independent appraisers; instead, they follow a standard set of guidelines called the "appraisal system", which determines the scope of the work to be performed and how it will be rated. Certified appraisers will normally submit a report to the lender or other mortgage lender that will be used in the event of a deficiency judgment.
Appraisals are not only limited to residential properties. There are numerous reasons for an appraiser might examine a particular type of business or other type of subject property. An appraisal of a yacht would be different from that of a single family home in Manhattan. In this case, a certified appraisal specialist would be used.
If you hire a real estate agent to assist in the purchase of your home, he will usually include a house appraisal in the contract. However, it is important that you be aware of the difference between a home appraisal and an appraisal report. A home appraisal is completed after the home is on the market whereas an appraisal report is typically completed before the property goes on the market. It is common for the buyer or seller to request an appraisal prior to offering the home on the open market. In this situation the buyer typically pays for the appraisal, since it is a separate service provided by the agent. Get in touch with this agent to know how much is my house worth? check it out!
There are many advantages to having a home appraisal. Not only can the buyer know the value of his investment, but the appraiser can also advise the seller on the proper protocol to take care of any liens that exist on the property. The home appraisal costs can be as low as one hundred dollars to several thousand dollars. In some instances, sellers will pay for their own appraisal. However, if the seller wishes to use a real estate agent he will most likely need to obtain this information from the lender.
Read more tips in this related post -