Four Major Steps Used in the Real Estate Appraisal Process
Home owners or buyers might at time want to do a true valuation on that particular property. The job will require that you hire a real estate company first. Real estate appraisal is the process of where an option of the market value of a certain property is developed. Some people will term it as the unbiased estimate of the true market value of what a certain home is worth. This will often be done when a lender orders for an appraisal during the mortgage loan process. This will make sure that the true market value of the home is achieved and the lender is not overcharged or undercharged. There are usually four major steps that are used in real estate appraisal to determine the worth of that property. They are the following.
First of all you will need to get a bank order. A Bank order contains the necessary details required in the process. The appraisal process will be initiated once the bank order is out because it will have the name of the institution. A bank order is very important hence one should go to a bank that will service them as quickly as possible. Go for well known banks around you and those that have serviced mortgage loans before.
After the release of the bank order the second process can now become possible. This is the property inspection. A proper inspection will be done on the home that you need to buy. The appraiser will contact the agents that are selling the home to agree on a time when the inspection can be done. The appraiser walks through the whole compound, in and out of the house noting conditions of the property and even taking pictures during the inspection.
Thirdly, the appraiser will do a comparison of the inspected home with those from their recent records. This will aid them with the sales information that they need about the home when the comparison is done. It will also enable them to see how it builds a competition against them. This can be affected by some factors such as lot size, lot location, landscaping, interior finishes and proximity to services.
The last step will be giving the final appraisal report. This comes after a true market valuation of the property is done at that particular time. With time the market value of the property might increase or reduce. Some of the things that are in the report given to the client include the value of the home and the address of the compared homes plus their description. Real estate appraisal helps new home owners to determine the value of the home they want to buy.