Four Main Steps Used in Real Estate Appraisal Process
You might happen to own or want to purchase a property and you want to do some valuation on it. You will first need a real estate appraisal company to do the job. Real estate appraisal is the process of where an option of the market value of a certain property is developed. Others will refer to this as it as the unbiased estimate of the true market value of what a certain home is worth. During the mortgage loan process lenders will always need such services. This will determine that true market value of the home which will endure that 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 as follows.
First of all you will need to get a bank order. A bank order will have the details that are required in the process process. The name of the institution that will be aiding you with the loan will be there hence helping to initiate the process of appraisal. Getting a bank order is very important and as a client you should look for a good bank that will service you with the loan as quickly as possible. Go for well known banks around you and those that have serviced mortgage loans before.
The second process becomes possible after the release of the bank order. This will be inspection of the property. A very good inspection will be done on the property that you want to buy. The inspection will be done at a time when the agents selling the home and the appraiser will agree on. 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 give them the sales information that they require and help them compare those homes to the subject property. This will also enable them see how it builds up a competition against them. Lot size, lot location, landscaping, interior finishes and proximity to services are some of the factors that are affected.
Giving the final appraisal report is the last step. This will come after they have done the true valuation of that property at that particular time. With time the market value of the property might increase or reduce. This report is always given to the client and it also 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.