Hiring a House Appraiser and Its Benefits
House appraisal is professional evaluation that uses official data in estimating the market value of a particular home or investment property. Appraisal, for example, can keep you from from paying $400,000 for a property that is worth $100,000 less. As a seller, house appraisal can be financially advantageous if it demonstrates that the value of your house has grown over the time you were occupying it, or that the appraised value is more than the agreed price.
A house appraisal can mean bad news too when you discover that the value of your house falls under the price that you wanted, but it’s always good to be aware of the facts.
Real Estate Appraisers and the Appraisal Process
Appraisals are executed by certified appraisal experts who are highly familiar with the local area and the local market. Appraisers typically go through hardcore training and testing and need to have considerable experience in order to be effective in their job well. To maintain their status as certified professionals, they also need to enroll in ongoing coursework and never stop updating their knowledge of the industry.
However, take note that appraisers are themselves human beings and therefore are vulnerable to making mistakes. They are also not all created equal in terms of professional knowledge and experience. Thus, if you are selling a property, you should not rely on just on appraiser’s opinion. And as always, research the background of the appraisers first before bringing them on board.
Contents of a House Appraisal Report
Appraisers typically use a residential appraisal report when determining the value of a single-family dwelling. To maintain consistency, the Fannie Mae Uniform Residential Appraisal Report is used by appraisers as the standard form. Fannie Mae requires that the appraisals come with an interior and exterior assessment of the house; a street map of the property and comparable properties used; and, of course, the appraiser’s analysis and conclusions as to the property’s value.
How an Appraiser Is Hired
There are usually two ways to hire an appraiser:
1. If you are planning to get a mortgage, the lender or an appraisal company will work with an appraiser to determine the amount that you can borrow on the property. Take note that in this scenario, the lowest-priced appraiser would likely be hired, negatively impacting your appraisal. Therefore, be ready to pay a bit more for a qualified appraiser.
2. If you would like to know how much your house is worth before talking to anyone or even before making a final decision to sell it, you can also hire an appraiser yourself. Appraisals are crucial as well in cases involving estate lawsuits or settlements.