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 agents 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? Appraiser’s 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.
- 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.
Qualifications Of Appraisers
Appraisers must be licensed or certified to conduct their services with federally regulated lenders in all states. There are states that require that they are licensed or certified to provide services with other lenders. Each state’s appraisal board administers a test where candidates must pass in order to become licensed or certified. Appraisers go through rigorous education and experience and comply with strict standards and code of professional ethics.
The Difference Between Valuations And Appraisals
Property valuation is done by a certified practicing agent at an agreed rate. They are not involved with any real estate agency and are neither real estate agents. They generally use three methods to value property, including capitalization, direct comparison, and summation. They conduct research and analysis in the market and issue a report on the factors affecting the property’s current market value.
Property appraisal is an informed judgment on the worth of a home. The agents consider all of the sales in the area and offer a detailed report of the local market.
What Does A Property Appraisal Entail?
One of the key things an agent 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 agent then compares the measurements of the property with others in the area. It is essential to understand the target market or potential buyers. Other outdoor areas to look at include the garden’s size, the size of the parking area, balcony, terrace, 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 agent will consider the bedrooms’ size and other features like whether they have built-in wardrobes, ensuite, or views. The agent also looks at recently sold properties that share similar properties.
Fixtures and Fittings
Fixtures and fittings are not necessarily sold with the property. Things like curtains and light fittings are not always included. The agent will consider whether 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.
Areas for Improvement
Most properties have areas where they need improvements. Appraisers look for these areas, and they are the ideal people to ask for areas that require improvements. Agents know what buyers value in a property and precisely what they are looking for while providing guidance.
Simple improvements like replacing door handle, revamp of the bathroom, new paint, or new lighting can affect the property’s final price. The overall cost of the improvements should be compared with the possible chance of a higher selling price.
When it comes to the location, the agent 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 worth will be more likely to be higher if it has a strong building and better condition. The structural work affects the price of the business since potential buyers usually request a building report.
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 agent 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 agent 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 agent.
- Property appraisal and supporting documents.
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!