Unless you are a professional real estate broker with a degree, you may only have a small idea about what happens in a typical real estate exchange. A person could get really confused when a realtor starts throwing out terms like "terms of loans", "exchange process", "investments", "ARM's" and the processes that come with buying or selling a home. A homeowner or home buyer who is researching these and many other terms may forget a key element in the selling or buying process. And that is making sure you get an accurate appraisal. This article will outline the key elements and the importance of an accurate appraisal process. Maybe it will help you find the right market for your home.
First off, an appraisal is basically a trained opinion about a property. Remember, everyone is trained differently so the appraisal decision can vary substantially. Some people are color-blind, which makes them see things differently than others. With an appraisal, several factors determine what that opinion ultimately is. In the end, the appraisal will conclude (hopefully accurately) what the market value is of your property. Sometimes the final figure is not well-defined. A well-trained appraiser will know where to find someone who can judge accurately different parts of the proper to make an accurate determination and opinion of what the property value is in your market area. This is where a home inspector enters the equation. This professional is trained to unveil areas that have been, shall we say, swept under the rug.
Every mortgage company requires an appraisal before they decide terms of a pending loan. Sometimes an appraisal may even be required during the property insurance process. An appraiser will view several external factors that relate to the property in his quest to determine his most accurate opinion.
Various factors affect the housing market and an appraiser's estimates will most likely be based on these factors. An appraiser will take into account the neighborhood and recent home sales of properties similar to yours.
By receiving an accurate appraisal, you will gain valuable information in knowing the value of your home, the outside factors that determine that value, and your own needs. This opinion will help you find ways of increasing that value plus it will help you determine when it may be a good time to sell.
