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Real estate appraisal is the process of estimating the value of a house or property before it is put in the market for selling or mortgaging. The appraisal process is very important because it gives the market value of the house.
The real estate appraisal is also used by banks to give them an estimate of the money to lend to their borrowers. The process of estimating the value of a certain property is done by an appraiser. The appraiser is usually a highly trained professional who has valuation knowledge. They are also fair meaning they do not give any favored judgement. Banks and real estate agent are some of the companies that usually employ appraisers. There are also independent or self-employed appraisers.
The appraiser will usually valuate the property within a familiar area. This means that they are well aware of the whole neighborhood and all the factors that might affect the property value. Another responsibility of an appraiser is to counter check the property’s records with the public records to ascertain it is legally owned. They will also take pictures of the property both inside and outside.
Comparing the houses with others in the area is also done by the real estate appraiser to determine the property value. The appraiser then writes a full report of their findings and also stores all the data from the property. The real estate appraiser will also include surrounding features that affect the value of the property like closeness to a mall, near a police station, near a highway and so on. The appraiser will then do some calculations using the information they have obtained and come up with an estimated value of the property.
Most of the real estate appraisals are similar in one way or the other. One thing similar in the appraisals is that they are all after the market value of a property. The real estate appraisal process can be broken down into major factors that the appraiser will be keen on to determine the value of the property. Knowing these factors as a home owner might be helpful in increasing your property value. The value determining factors include the size of the house, the type of the house, the depreciation of the house, age of the house, the house features, the renovations and the repairs made to the house.
There are two ways on which one can get a residential appraisal for free. Option one involves using a real estate agent to value the house. The second option is by the use of the many available free online appraisal websites. The online appraisal is very convenient because it is fast and the only requirements needed are the house address and some extra features and you get the market estimated value of the house.