A real estate appraiser basically determines the worth of a property. The purpose is to see if it’s worth the price asked. This makes sure it’s fair to the buyer and seller, and also tells the lender if it’s a good value in case of a foreclosure. They’ll look not only at the house, but at the area around the house; location, services, safety of the area and plans for the area are all factors that determine its value.
Who is the Real Estate Appraiser?
In order to become a real estate appraiser, there is lots of training involved. They are licensed by each state, which requires them to perform rigorous coursework. This coursework is to ensure that they know everything possible about real estate markets. Their role in the entire US economy is quite large. They’re the ones who make the final decision on how much a place is worth, and this decision affects lots of other things.
Another important qualification is that they have to be an unbiased third party. They can’t be connected in any way to the buyer or seller, financially or otherwise. This is important in making sure that they make a fair assessment. If they’re connected to either party, it can sway their appraisal. Even though they must be an objective third party, some mortgage lenders have appraisers on their staff.
How Does an Appraiser Make Their Decision?
The process of making an appraisal is very complicated. It starts with an inspection of the property and the grounds around it. Following this, they will tour the neighborhood. In just a few hours, they can make a preliminary report on the home and the area around it. However, a more detailed report can take weeks or even months. They use lots of resources, including records and interviews, to piece together a picture of how much the house is worth. All of this information can make a major difference, and they’ll continue searching until they’re satisfied that they can make an accurate appraisal.
For the initial tour of the house, they’ll be looking at the condition of the property, how modern it is, what improvements have been made to it, and how big it is. Other factors, like yards, basements or swimming pools will also come into play. They’re looking at the present condition as well as history of the property.
Other Benefits of Hiring a Real Estate Appraiser
Aside from just determining the value of a property, a real estate appraiser can also tell you information about the neighborhood, like how much other homes are going for. They can show you things about the house that you might have overlooked, such as things that could be a problem in the future. They can also help you negotiate the price with the seller based on their appraisal, and sometimes can help you find a mortgage lender.
A real estate appraiser is not only essential for helping you buy a home, they can also provide you information about properties and neighborhoods. Whether or not your mortgage lender provides one, you have to get an appraisal of the house. They play an important role in the process of buying a home.