Of all the real estate business professions, the Appraiser profession probably ranks as the most unknown and misunderstood career. Whether to buy or sell property, refinance, or invest in properties. Everyone has to know what an appraisal is, but more importantly, the duty of the Real Estate Appraiser and how he may influence you. This blog informs the reader about a real estate appraiser’s job and why it is crucial.
Reasons Real Estate Appraisals Are Essential
For Buyers and Sellers
- Accurate pricing: A Manhattan real estate appraiser can help evaluate the properties to determine whether they are sold at the correct market price. In other words, it does imply that buyers are not overpaying and sellers are not underpricing their products.
- Loan Approval: For this reason, lenders require an appraisal before they release the mortgage to their clients. This is because the lenders want to ensure that the property has value as assurance for the money that the lenders are offering.
For Lenders
- Risk management: Appraisals help to protect the lender from having a loan amount that is not more than what he had valued in the property. This reduces the risk when a borrower defaults.
- For Investors: Real property investors rely greatly on appraisals to know whether an asset is a sound investment and to estimate potential returns.
Factors That Influence Property Appraisals
Here are some of the factors you should know about:
- Location: Perhaps the major factor here would be a property-related location. Proximity to local amenities, schools, public transport, and general neighborhood quality can greatly impact value.
- Property Condition: This would consider the property’s condition regarding any recent renovations or needs for repairs. Well-maintained properties usually appraise higher.
- Size and layout: The size of the property and the type of layout in terms of the number of bedrooms and bathrooms determine its value. In general, larger properties do command higher appraisal values.
- Comparative Sales: These are recent sales of properties with similar characteristics to the subject property in the vicinity, offering guidance or a benchmark to the appraiser. The comps will determine what amounts buyers will pay for these homes.
These are some of the tips homeowners should know when preparing for an appraisal:
- Enhance the Curb Appeal: The first impact is crucial. It is also important to remember that the exterior of your home must be properly maintained and enhanced.
- List Upgrades and Repairs: Give the appraiser a listing of upgrades and repairs made recently in the home. Emphasizing improvements can justify a higher value for the property owner seeking appraisal services.
- Access and Information: Make sure that the appraiser has a full set of keys to get inside the home and provides any additional information with respect to the house or any area that can be provided.
Real estate appraiser is an occupation that anyone undergoing a real estate transaction should be familiar with. Understanding how the concept of appraisal operates and which parameters affect it means you’ll be better at navigating the real estate market.