Home Appraisal – What Is It?
Home Appraisal is a complicated yet essential part of real estate investment. Appraisals are appraised to show the worth of a certain property at a certain price. Appraisals are also used to determine the market value of a property when a seller wants to sell his property quickly. In this article I will discuss Home Appraisal and why it is so important in buying or selling real estate.
Real estate appraisal, land valuation or property appraisal is the procedure of determining an estimate of value for a property. Most real estate deals often involve appraisals as they happen infrequently and each property is individually unique, unlike most corporate stocks, which are almost exactly the same and usually traded everyday. A lot of research is required before any deal can even be considered to obtain a fair market value.
Appraisals are usually done by a qualified appraiser, real estate agent or appraiser hired by either the buyer or seller. The job of the appraiser is to take note and describe the condition of the property in terms of its present use, architecture, condition and details that affect the value. The purpose of the appraisal is to help ensure that the seller obtains the maximum price for the property. When a buyer or seller purchases a house, the appraisal serves as a guide to check the current prices of houses in the neighborhood. The information about the home’s current condition and other specifics helps the buyer or seller to make a good decision when purchasing the house.
The most common type of appraisal used in the purchase of real estate is the sales comparison of comparable homes in the same area. Comparable homes are those houses that sold within a year or two of the one being appraised. These could be new homes, existing homes or those that have been recently built. This type of appraisal is normally used to get a general idea on home values.
Another type of appraisal is the cash-in-refinance (CIR) appraisal, sometimes called a mortgage replacement value. A cash-in-refinance is a type of mortgage that requires homeowners to sell their home and pay off the outstanding balance on their loan in order to qualify for a certain cash amount to pay for the remainder of the loan. Once the outstanding loan is paid off, the borrower will be able to receive a cash payment equal to the current value of the home. Although this type of appraisal is often used by people who intend to purchase a house in the future, it is also frequently used for individuals who currently own a house but need money to make improvements to the house.
The appraisal can be done in one of two ways: directly with the appraiser, or through a mortgage lender. If you are contacting a mortgage lender for a cash-in-refinance, they will usually require that you provide them with your most recent sales tax returns, plus your credit report, to determine your appraisal value. Mortgage lenders are not obligated to use this method; however, the majority of them do choose to use this method, because it is more accurate than using the sales price of the home. In addition, this method will usually cost less than having an appraiser come out to your house and determine the value of your home based on recent sales prices. Regardless of which method is chosen, it is always important to find an appraiser that is experienced and qualified to perform this service.