Purpose Of A Real Estate Appraisal An appraisal is needed to determine the estimated market value of a house or condominium. It is used to assist someone in making a decision. They may be considering purchasing, selling or lending money on a house, condo or a commercial property. Appraisals are also used for tax purposes to estimate how much money a property owner has to pay in taxes. Banks need appraisals to assist them in figuring out how much money to lend someone for a mortgage loan application. There are many different aspects of a loan application that the banker has to consider, but the bank always requires an appraisal. People get very emotional and excited about purchasing a house. When they're in this highly emotional and excited state, they tend to just look at the cosmetic appeal of a house instead of the important factors. They forget that they're not buying a car; they're buying a house! By becoming too emotionally attached to a deal, people often pay above market value for a home. This can cost them tens of thousands of dollars in an overpriced purchase. A house is the biggest investment most people will make, so it's prudent for them not to take any chances. They should try to eliminate as much risk as possible. It's a great feeling to have a client thank you for helping them out with the biggest investment they'll ever make. A pre-purchase appraisal will inform people of the true market value of a house. This will enable them to make an educated and intelligent decision on whether or not to purchase the home. They will also know the approximate amount to pay for it. | | All houses and condos should have a home inspection performed by a well qualified and thorough home inspector, before signing any contracts. The appraisal is generally done after the contracts are signed and the bank financing application has been filled out. There will be repairs or upgrading needed in all homes, even brand new ones. Sometimes people think that because a house is new it doesn't need to be inspected. They don't realize that builders are businessmen trying to make a profit. Any builder who doesn't do quality construction can cut corners to save a few dollars to try to try to increase their profit. When a house is built "up to code" it doesn't ensure a perfect house. Local building codes are the minimum standards that a builder or contractor has to follow to obtain a building permit or a Certificate of Occupancy for the work done. There's nothing to stop a builder or a contractor from exceeding the building codes other than saving some money for themselves or their client. Pre-sale appraisals are recommended. Before someone puts their house up for sale they should have it appraised to estimate the true market value. This will prevent any last minute holdups because of problems found during the bank's appraisal. Any last minute problems will delay the sale or kill the deal altogether. Homeowners can hire an appraiser to dispute the amount of their property taxes. Many people don't realize that they can be over charged for their property tax assessments. Homeowners need to hire an appraiser if they believe their property taxes are too high. An appraiser can estimate the market value of their house and then the homeowner can try to have their property taxes reduced. An "A to Z Appraiser" provides a much needed and highly respected service. People are trusting you to help them with the biggest decision they'll ever make!! |
