Questions About Appraisals You Must Know the Answers To

The Four Major Steps Used in Real Estate Appraisal

You might happen to own or want to purchase a property and you want to do some valuation on it. The job will require that you hire a real estate company first. The process where an option of the true market value of a home is developed id known as real estate appraisal. Some people will also refer to it as the unbiased estimate of the true market value of what a certain home is worth. This will often be done when a lender orders for an appraisal during the mortgage loan process. This ensures that the true market value of a certain property is achieved and that the client is not overcharged or undercharged. There are usually four major steps that are used in real estate appraisal to determine the worth of that property. They are the following.

First of all you will need to get a bank order. A Bank order contains the necessary details required in the process. The name of the institution that will be aiding you with the loan will be there hence helping to initiate the process of appraisal. A bank order is very important hence one should go to a bank that will service them as quickly as possible. Use the well known banks that you know have serviced mortgages before.

The second process becomes possible after the release of the bank order. This will be inspection of the property. A proper inspection will be done on the home that you need to buy. The agents selling the property and the appraiser will agree on the time when the inspection can be done. When the inspection is being done the appraiser walks through the whole compound, in and out of the house noting conditions of the property and even taking pictures.

Thirdly, the appraiser will do a comparison of the inspected home with those from their recent records. This will give them the sales information that they require and help them compare those homes to the subject property. It will allow them to also build a competition among them. Lot size, lot location, landscaping, interior finishes and proximity to services are some of the factors that are affected.

The last step will be giving the final appraisal report. This will come after they have done the true valuation of that property at that particular time. Over time the value of the property will either appreciate or depreciate. This report is always given to the client and it also include the value of the home and the address of the compared homes plus their description. Real estate appraisal helps new home owners to determine the value of the home they want to buy.

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