House appraisal is expert opinion that estimates how much an investment property is worth in the real estate market, based on official criteria. For instance, appraisal can save you from paying $500,000 for a house that is actually only worth $390,000. As a seller, house appraisal can be financially advantageous if it demonstrates that the value of your house has grown over the time you were occupying it, or that the appraised value is more than the agreed price.
A house appraisal can mean bad news too when you discover that the value of your house falls under the price that you wanted, but it’s always good to be aware of the facts.
Property Appraisers and the Appraisal Process
The appraisal is performed by certified professional appraisers who have in-depth knowledge of the local market. Appraisers often undergo intensive training and testing and must be substantially experienced to do their job well. To maintain their status as certified professionals, they also need to enroll in ongoing coursework and never stop updating their knowledge of the industry.
However, take note that appraisers are themselves human beings and therefore are vulnerable to making mistakes. They are also not all created equal in terms of professional knowledge and experience. Hence, if you are a real estate investor or seller, you need to consult more than one appraiser. And as you should when hiring Columbia's number one real estate appraiser service professional, do your research before seriously considering an appraiser.
House Appraisal Report Contents
Appraisers normally assess single-family dwellings with a residential appraisal report. To maintain consistency, the Fannie Mae Uniform Residential Appraisal Report is used by appraisers as the standard form. Fannie Mae requires that the appraisals come with an interior and exterior assessment of the house; a street map of the property and comparable properties used; and, of course, the appraiser’s analysis and conclusions as to the property’s value.
Methods of Hiring an Appraiser
There are usually two ways to hire an appraiser:
1. If you’re getting a mortgage, the appraiser or lender will hire an appraiser to know how much they an allow you to borrow on the property. Keep in mind that in such a case, the company will probably hire the lowest-priced appraiser, and this can have a negative effect on your appraisal. Thus, be willing to pay a little more to hire a qualified appraiser. Click to learn more here.
2. If you are interested to know the value of your house before even putting it in the market, you can do that by connecting directly with an appraiser. Appraisals are also important in estate lawsuits or settlements."
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