A home holds many memories, and most people find it difficult to attach a price on something that is priceless to them. Selling and buying a home has become challenging, with real estate appraisers flooding with varying degrees of experience. A professional appraisal quote will help you figure out how much your home is worth. So what is an Appraiser? An appraiser is someone who determines the market value of an asset, mostly in the real estate industry.
An appraiser should act independently of the selling and purchasing parties in the transaction. They are expected to be unbiased in their opinion about the real and fair value of an appraised asset by using observation, facts, statistics as well as any other relevant information. The findings are presented in a written or verbal appraisal, depending on the circumstances.
What Is An Appraiser’s Role?
What is an appraiser role in the real estate industry? Appraisers attempt to attach monetary value to homes. Investors usually hold their work in high regard due to their lack of liquidity association with the assets. They are expected to be alert and take into account every aspect and characteristic that affects the asset’s value. They also display their ability to put analytical skills into work, communicate effectively, and exercise sound judgment. In the real estate industry, appraisals are a requirement before an asset is sold.
The appraisers conduct on-site inspections where they:
- Check the condition of every room.
- Walk-through the real estate property to check the condition of the exterior.
- Measures the square footage of the home.
- Access the value of amenities present in the real estate like a finished basement, built-in bars, theaters, or swimming pools.
- Record any violations of the health and safety violations.
Additionally, appraisers are an independent, impartial and unbiased party to a transaction. Most all other parties to a transaction have some sort of interest in the outcome and can thus have a biased opinion of what the value should be. An independent appraiser has no preconceived notion of what the value should be, and understands that their role is to determine market value for the interested parties.
Qualifications Of Appraisers
Appraisers must be licensed in their state to conduct appraisal services. Each state’s appraisal board administers a federally written test that an appraiser must pass in order to become licensed. After becoming a licensed appraiser, further education and experience allows the opportunity for an appraiser to take a test to become a Certified appraiser, which is a higher level of licensing which increases the types of services an appraiser may perform. The education and experience to become licensed/certified is rigorous, and once licensed/certified they must continue to take education to maintain licensure. There is also a strict code of ethics with which appraisers must comply.
The Difference Between Valuations And Appraisals
Property valuation can be performed by anyone who ventures to perform valuation services. There is no required education and providing valuation services does not require any form of licensure or supervision. The experience and expertise of individuals offering valuation services varies significantly, with little offered to ensure that the valuation is credible, and virtually no recourse for the consumer who makes a financial decision based on a valuation.
An appraisal is very different, and only a licensed or certified appraiser can offer appraisal services, under penalty of law. People, banks and other consumers of appraisals understand that a qualified professional is required when the results are important.
What Does A Property Appraisal Entail?
One of the key things an appraiser will check is the size of the property, the size of significant areas in the home, and the size of the structure on the land. The appraiser then compares the measurements of the property with others in the area. It is essential to understand the target market and potential buyers. Other outdoor areas to look at include the garden’s size, the size of the parking area, balcony, terrace, number and size of detached garages/sheds, and many more.
Number of Bedrooms
Another crucial element in the property appraisal process is the number of bedrooms, and usually, more bedrooms fetch a higher market value. The appraiser will consider the bedrooms’ size and other features like whether they have built-in wardrobes, ensuite bathrooms, or views. The appraiser also looks at recently sold properties that share similar bedroom count.
Fixtures and Fittings
Fixtures and fittings are not necessarily sold with the property. Things like curtains and light fittings are not always included. The appraiser will determine which fixtures and fittings will be included in the sale price and their condition at the time of the sale. Fixtures and fittings can affect the overall cost of a property, even though an appraisal only considers the real property involved, and not any personal property.
Areas That Require Maintenance
Most properties have at least some areas where they need maintenance. Appraisers look for these areas, and they are an ideal person to ask for how maintenance might change the market value of your home. Appraisers know what buyers value in a property and precisely what they are looking for while providing guidance. Simple improvements, like replacing a door handle, bathroom remodel, new paint or new lighting can impact the property’s market value. The overall cost of the maintenance/repairs should be reconciled with the possibility of a higher market value.
When it comes to the location, the appraiser will look at the street property, local attractions, schools, public transport routes, and other amenities that are available in the area. Sometimes, the lack of nearby amenities may also attract higher prices as some people prefer quieter streets.
Building Structure and Condition
A property’s market value will most likely be higher if it has higher quality building materials and is in better condition. The structural work affects the price of the property since potential buyers usually request a building inspection.
The overall presentation is key as the potential buyers visit the property. The presentation can be enhanced by using rented furniture or a property stylist at a cost. The property needs to capture the people’s attention and generate interest through exceptional presentation.
Ease of Access
The appraiser conducting the appraisal will consider the ease of access to the property including front door access, car, and other utilities. Accessibility is a vital factor to consider, especially when the buyers are older adults. More access means that the property will be more desirable.
Market conditions generally dictate the worth of the property. The appraiser considers the previous sales in the area and the overall market trends. This gives them an idea of the price to present as a guide.
Property Appraisal Process
It usually involves three steps, including:
- Booking the property appraisal.
- A home visit by the real estate appraiser.
- Property appraisal, compiling supporting documents and finalizing the appraisal report.
Importance of Property Appraisal
An appraiser is useful in providing appraisals in the following areas:
- Home Buying appraisals
- Divorce appraisal
- Mortgage refinancing appraisal
- Tax assessment appeal appraisal
- Home sealing appraisal
- Estate planning appraisal
- PMI removal appraisal
ExcelAppraise offers affordable home appraisals. Contact us today and our friendly staff will help you to take this crucial step in buying or selling your home. If you are interested in a free quote, call us at 1-801-882-2292!