Real estate transactions are complicated and require expertise as well as property-related knowledge. You are likely to hire a realtor or an attorney to help you every step of the way. You may also want to hire the services of reputable and certified evaluators for real estate appraisals when you hope to buy or sell a property. You get to determine the right value of the property without being clouded by emotion. Moreover, having such a value handy also helps you to get the right buyers when you are keen to sell the existing property.
Reasons To Consider Real Estate Appraisals
Simply deciding on a value will not enable you to get the asking price, either. It is thus important for you to consider connecting with a professional firm and requesting a proper evaluation of the property by a certified appraiser. Some of the specific reasons to go ahead with such an exercise include the following: –
- Determine a Fair price– The valuation is done by following a standard procedure, which is absolutely impartial. Having the certified evaluation done helps the buyer and seller to agree on an impending sale. Both parties are happy to note that the property is being sold at the right market value.
- Mortgage Lending– All lenders, regardless of it being a banks, non-banking institutions, or individuals, are concerned about the guarantee of repayment. They thus require an appraisal done for the property, which will be handed as collateral against the loan. The lender needs a certified and acceptable appraisal done as an assurance of repayment. The value of the property must be more than the loan amount to protect the lender in case of foreclosure.
- Informed Decision– All concerned parties, including the buyer, seller, and lender, are happy to make a financial decision related to a real estate transaction based on the report provided by a certified appraiser. This allows them to make information-based decisions, thus reducing the risks of financial issues and malpractice.
- Resolution of Legal Issues– A proper property valuation report becomes essential to settle legal issues such as estate disputes, divorce proceedings, and inheritance litigations.
- Property Taxes– The value determined by the certified appraiser may be used to calculate the property taxes owed to the government by an individual or business entity.
- Insurance– An appraisal of the property, along with its contents, also helps an insurance company to assess the insurance coverage and payout against a claim.
Advantages Of a Real Estate Appraisal
There are multiple parties satisfied with the report provided by a certified property appraiser. The buyer is pleased to receive the report for fulfilling the following requirements:
- Avoid overpaying
- Proper Negotiation
- To secure financing
The seller, on the other hand, appreciates the following pluses ensured by the professionally created valuation report:
- Justification of the Asking price
- Attracting Serious Buyers
- Proper Estate Planning
Most lenders make the real estate appraisals a prerequisite for the release of funds to the borrower. This enables them to protect their investments when the property used as collateral is valued more than the loan amount.
