Why Use a Real Estate Appraiser
Whether you have decided to buy or sell a home, the services of an authorized real estate appraiser could be exactly what you need.
Real estate appraisers provide a valuation of a property.
Appraisers can be called upon as consultants or valuation specialists to provide opinions on:
- the current value of property being bought or sold
- future value of property being built
- value for mortgage or lending purposes
- value to assist in investment decisions
- value of assets
- value of property involved in a legal dispute
- verification of damage claims
- value to properly measure property tax assessments, capital gains and other taxes
- value of property to determine compensation when property is expropriated
- consulting – feasibility studies, property management, lease analysis, highest and best use studies
An appraisal may be required for private sales or transactions involving property not listed on a listing database, a high loan-to-value ratio or for non-sales transactions, such as refinancing or renovation loans. Those purchasing a property from a “For Sale By Owner” without a real estate agent may be even more interested in having an appraiser evaluate the property as it may provide greater piece of mind that the price is appropriate.
Appraisers produce appraisal reports based on the specifications of a property and the variables that help determine its market value. All appraisal reports contain an estimate of value, the effective date of the appraisal, the appraiser’s certificate and signature, the purpose of the appraisal, the qualifying conditions, the conditions of the neighbourhood, an identification of the property and its ownership, an analysis and interpretation of the data and the assumptions made, the processing of the data by one or more of the three approaches to value, and other descriptive support material such as maps, plans, charts and photographs.
An independent evaluation
A lot of people can be involved in the purchase or sale of any one property and many of them have their own reasons for wanting it to be bought or sold for a particular amount.
An authorized real estate appraiser will give a completely independent evaluation of a property’s value, independent from any transaction that may follow or result from their report
Sellers and buyers may wish to have an appraisal done for a specific piece of real estate, but for different reasons. An appraisal conducted by an authorized real estate appraiser can recommend to a seller the most effective list price to obtain maximum value. Though a real estate agent can also provide help in this regard, an independent appraisal is a further safeguard that a property will be priced appropriately.
On the other hand, a buyer may want to involve an appraiser for an evaluation of a property they are considering purchasing, because an appraisal report can help buyers ensure they are not paying too much for a property.
Whether buying or selling, consider using an authorized real estate appraiser as part of the process to protect yourself and your investment.
What about lenders?
Lenders, too, sometimes have a particular reason for involving a real estate appraiser in a transaction. A lender wants to ensure that its money is being used to purchase something of value, that is priced appropriately and for which the buyer is not paying too much. In some cases, prior to advancing mortgage funds, a lender will require that an appraisal be completed so that they have assurances that the property is worth what the buyer is paying for it.