House appraisal is professional evaluation that uses official data in estimating the market value of a particular home or investment property. For instance, appraisal can save you from paying $500,000 for a house that is actually only worth $390,000. If you’re a seller, house appraisal can mean finding out that the value of your property has gone up as you were residing in it, or that the value appraised exceeds the mutually 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
The appraisal is performed by certified professional appraisers who have in-depth knowledge of the local market. Appraisers often undergo intensive training and testing and must be substantially experienced to do their job well. To remain certified, they must also take ongoing courses that make sure they are abreast with the latest developments in the industry.
However, take note that appraisers are themselves human beings and therefore are vulnerable to making mistakes. Not all of them are also equally adept at what they do. Thus, if you are selling a property, you should not rely on just on appraiser’s opinion. And needless to say, do a bit of research on the appraisers’ backgrounds before working with them.
What a House Appraisal Report Includes
When working on single-family dwellings, appraisers often conduct their appraisals through a residential appraisal report. To maintain consistency, the Fannie Mae Uniform Residential Appraisal Report is used by appraisers as the standard form. The report is expected to include an assessment of the property (both interior and exterior); a street map of it and of comparable houses; and the analysis and conclusions of the appraiser based on what he has found.
Hiring an Appraiser
There are two options when it comes to hiring 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. Thus, be willing to pay a little more to hire a qualified appraiser.
2. If you are interested to know the value of your house before even putting it in the market, you can do that by connecting directly with an appraiser. Appraisals are crucial as well in cases involving estate lawsuits or settlements.