For many people home purchase is the single and major investment. Whether it is used for primary residence or for vacation home or for an investment purpose, it involves the complex financial transactions and engages multiple parties. Appraisals are an important part of home buying transaction and home appraisers play a vital role in valuation of a property..
Properties are idiosyncratic in the nature be it the size, condition or the location which is the main determinant of a home value, making the role of appraisers essential. It is the legal responsibility of appraiser to study the market situation and past transactions carefully to decide the most competitive price.
People pay to home appraisers before buying or selling a house who evaluate it by comparing with similar properties in the area. Appraiser guides brokers, bankers and investors whether the particular house is a sound investment for them or not. Sometimes appraisers are under the pressure to inflate the valuation of property by lenders or home owners but appraisers themselves are conscious for the violation of strict industry code and ethics that may lead to cancellation of their license.
Appraisers are required to complete appraisal course, test and training. Before hiring a home appraiser, one must confirm that
- Whether the company has the state license which is not suspended or expired.
- Have full awareness of required area.
- Have proper data source of particular area and
- It must provide professional service with evenhanded fees.
Some residential property in US requires a standardized form for reporting by a certified appraiser. Reports includes many issues like details about property along with comparison with similar ones, constructional details, real estate value of the area, type of the area, any subject that can prove adverse for the property value, etc. Appraisers also give assurance that the value indicated by them is valid and unbiased.
Appraiser can provide more accurate appraisal by doing a survey of the house and having recent tax bill or copy of original plans or deed showing the legal description, etc. There are certain standards for valuation such as market value, foreclosure value, distressed sale value, investment value. Appraisals are done usually for negotiation between buyer and seller, lending purpose, government acquisition of private property for public use, lease negotiation and for tax assessments.
Print This Post
Email This Post
HUD Fair Housing Equal Opportunity
