If you have bought or sold a property, you are likely familiar with an appraisal. If you are new to the process of home buying, you may want to know more about this procedure. The sale of property weighs heavily on the appraised value of the property. Here we will explain what an appraisal is and why it matters to homeowners.
What is an Appraisal?
An appraisal will come to your rescue if you have ever asked yourself, “What is the value of my home?” Estimates are professional home value assessments conducted by licensed appraisers. Appraisers are commissioned to evaluate real estate in a specified area. The professionals conduct on-site evaluations of properties by taking measurements, pictures, and making notes regarding the property and surrounding area. The results of their assessment are recorded in a report known as an appraisal.
See the Impact of Home Renovations on a Home’s Value
It is common for homeowners to invest money for the renovation of their property. Money can be spent towards the remodeling of a property in a host of ways—some more effective at raising the value than others. One question that lurks in the mind of the homeowner that has remodeled different aspects of their homes is related to, what the value increase of their investment amounts to. They need to know if their efforts have made a significant difference in the assessed value of their property.
Making Sure Area Values are Holding Up
During the housing crisis of 2008-2010, the housing market tanked in a way that shook economic markets around the world. Homeowners found themselves upside down in their mortgages—meaning they owed more to their lenders than their properties were worth. There are factors in your local area that can lead to a decline in your immediate housing market. Having an appraisal done will give you the answers you need regarding the stability of your local housing market and your property value.
Appraisals are Required to Sell the Home
The main factor that makes a homeowner anxious to have an estimate done is that it is required by banks and other mortgage lenders to clear a mortgage deal to close. For every traditional real estate deal, there is a list of things that must be done before the lender will clear an agreement to settle. Having an appraisal is right up there on the list next to having an official title search—to affirm that there is a clear title.
Conclusion
Regardless of what side of the real estate deal you are on the appraisal is a crucial factor in getting a deal closed. The property owner hopes that an assessment on their property will support their view of what their property is worth. Too often, a homeowner has a sense of their property is worth more than it is due to knowledge of the market in a previous period. Getting a current appraisal will put any uncertainties to rest.
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