A critical component of the housing market, a home appraisal has widespread affects on the value of a property and what type of quality loan a borrower may receive.
A job made more difficult by the ever-changing landscape of home sales, determining the correct value for a property is a difficult task. Many of those professionals were recently surveyed by the Appraisal Institute, and nearly three-quarters feel optimistic about the job and the demand for the services over the next year or two.
"Appraisers have faced a challenging real estate market in recent years, and it's great to see that so many valuation professionals are feeling optimistic about the future," said Richard Borges, president of the Appraisal Institute.
Out of all the residential appraisers questioned, 95 percent believe their jobs are more in-demand than one year ago, while only 49 percent of commercial appraisers agree, according to the survey. Many also feel that the desire for a home appraisal is up, and 32 percent of residential appraisers believe that demand will only increase over the next one to two years.
The effect valuation services have on the market
Home buying can be an emotional time for many, and the expert eye of an appraiser is often the voice of reason for a rash decision.
According to United States Appraisals, many of these professionals are encouraged by the housing segment, and optimism is spreading about the overall trend. In regards to home values, more than 70 percent of appraisers stated that their numbers went up, while only 6.6 percent reported depreciation.
"Appraisers tend to focus on the local markets in which they work and are not typically concerned with national numbers or reporting," said Aaron Fowler, president of United States Appraisals. "By polling our nationwide panel of local appraisers, we believe that in the aggregate we receive a solid interpretation of the national marketplace. Overall, it is good to see continued optimism in our appraiser community."
If a home is priced too high, that can have an effect on the home loan, and any difference can make purchasing a risky proposition for both lenders and buyers. An over-valued home can have financial ramifications later when trying to sell, and banks might have backed loans on homes that aren't actually close to perceived value.
In addition, real estate records can provide insight into a current market. A home's condition can alter the appraised value, as well, and any repairs are helpful before calling in a professional, according to Zillow. Regular cleaning is often overlooked, which can hurt overall value.