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Property Appraisals
The property appraisal is a necessary and informative tool when buying
or selling real estate. It will give the prospective buyer as well as
the seller and lender a most accurate overview of a property's current
market value.
Although some lending institutions employ in-house appraisers, most
often property appraisals are done by independent licensed property
appraisers who are familiar with local real estate values. In any
event, no commercial lender will consider financing without a current
appraisal.
Banks and lenders are not the only organizations that use appraisals in
their business. Title agents, real estate trusts, attorneys, mortgage
brokers, insurance companies as well as private individuals are all in
need of an appraisal from time to time.
When inspecting a property for appraisal, many things are taken into
consideration. Street appeal such as cute lawn ornaments count for
nothing towards value. However, a fresh paintjob, sprinkler system,
gutters, driveways and fencing will be considered in the final results.
Property appraisers must constantly stay in touch with recent real
estate sales in their area of business. To do so, many are members of
local real estate boards and/or subscribers to various trade
publications. Other sources of valid real estate transactions include
courthouse records which will include those sales that were of a
private nature, not brokered through an agency, and therefore not
included in multiple listing service reports.
The property appraiser must justify his work and be able to back it up
with valid data. He will base his value following strict guidelines
regarding recent comparable sales. Such properties must have sold
within a given timeframe and be situated in as near a location to the
subject property as possible. These sales would ideally be the same age
and size and in similar condition. However, this is mostly not the case
and educated value adjustments have to be made for the differences.
If you are thinking of buying or selling property, an experienced real
estate agent who is active in today's market can be an excellent source
of information and suggestions. Listen to them - they will know values
of similar properties in your area and can give you an informal market
analysis of the property you are interested in selling or buying.
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