What Is Real Estate Appraisal?
Real estate appraisal is simply a process of determining what a property’s real worth is. The appraisal is generally undertaken by an appraiser who has been licensed by the state. They should be independent third parties who can provide unbiased valuations. That all sounds very formal and to an extent it is. Let’s take a closer look at the process.
When are real estate appraisals done?
Appraisals can be done at any time. Generally speaking, an appraisal is done by the seller to determine the selling price of a property; undertaken by the buyer (generally insisted upon by lending institutions); and for taxation purposes.
Presenting real estate for appraisal.
Before having an appraisal done, treat the appraiser as a potential buyer. This is particularly important if the appraisal is being done by the buyer for lending confirmation. Your property should be in the best possible condition, with small things like lawns cut, gardens weed free, bathrooms and kitchens spotless and the property looking neat.
There are times when sales have fallen through because the lender’s appraisal has valued the property at below the negotiated sales price. If this is because you have not presented the property well, your inaction will have cost you the sale.
You can dispute the valuation of your real estate
If you disagree with an appraiser’s valuation of a property then you can dispute their assessment. You should really discuss this option with a real estate agent since they will have an intimate knowledge of the values of properties in your area.
It is not often that an appraiser gets it wrong. However, if recent sales have been higher than in the past and the appraiser is working off older data then that may have had a negative influence. Real estate agents really are your best advisers in these situations.
Real estate appraisals are designed to provide all parties interested in a property with a fair and unbiased opinion of the property’s worth. Present your property in the best possible condition and you will find your property receives the best valuation possible.
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