|
How is Market Value Determined? Home Appraisal vs Home Inspection
|
Who Needs An Appraisal? There are many reasons you may find yourself in need of an appraisal but the most common usually involves the purchase or sale of real estate. Depending on whether you are the Lender, Buyer or Seller in a real estate transaction, the reasons for having an an appraisal may differ significantly. The lender wants assurance that the property will serve as adequate collateral for the loan in the event you default on the mortgage payments. Generally, lenders are not concerned about the aesthetics or special features of the property, they just want to minimize their loan risk by having a sufficient loan to collateral ratio. The buyer wants to insure that the asking price for the property is fair and in line with similar properties in the area. The appraisal should give the buyer assurance they are not over paying for the property. Naturally, the seller wants to insure that the property is sold for the highest price possible. If you are selling the property your self i.e. "for sale by owner" an appraisal by a experienced, qualified appraiser is a must. Taking into consideration that the buyer, seller and lender may have conflicting "goals" or objectives for an appraisal, the importance of having an independent third party perform the appraisal should be apparent. Other common reasons for a real estate appraisal include probate, divorce, prenuptials, private mortgage insurance removal, mortgage refinancing, equity loans, property tax abatement, eminent domain foreclosure, estate tax planning, insurance claims, employee relocation and evaluation of investment property.
|
|
Sharon Auffet Appraisal
Services
501 Magnolia Trail |