The price of a home is often one of the most important factors for getting a property sold. Due to this, the job of a real estate appraiser is extremely important. Without a correct estimate of value, the numbers might be totally out of proportion, leading to an increased stay on the housing market.
Learn the area
Knowing the right price comes down to having the correct information - such as real estate records and property data, something that every home appraiser should have easy access to. In fact, sometimes the data that the homeowner has might be incorrect, according to Tahoe Mountain Resorts Real Estate. Therefore, any relevant statistics that point to the contrary are extremely valuable during an appraisal.
In addition, a real estate appraiser has to be very familiar with a location, in order to provide accurate assessments. People from out of town don't always know the intricacies of a neighborhood, and comparable home sales factor into an appraisal.
Due to legislation changes, mortgage brokers and real estate agents can't choose an appraiser - that task is the responsibility of the buyer or seller. Now, it shouldn't be difficult to hire someone who knows the area, and appraisers should market their skills in this way. The more knowledgeable a professional is, the better the price and the easier a home sale will be.
Looking at comparable properties is a key step in the home appraisal process, and if there aren't enough nearby in the last three months the appraiser needs to find useful data, according to TMR Real Estate.
Mortgage records and real estate property records, easily accessible from Courthouse Retrieval System, are a great way to provide the needed information for a real estate transaction.
Details an appraiser should look at
One element of success for a real estate appraiser is being able to look through the eyes of a buyer, according to Realtor.com.
Alan Hummel, former president of the Appraisal Institute, recommended several tips for great evaluations, and most start with a visual analysis of a property.
"We're trying to react the way a typical purchaser would," Hummel explained to the website.
How a home looks also ties into the overall condition of the real estate market in the area, Realtor.com noted. An appraisal can dictate the expectations of the homeowners, and the more personalized the estimation is, the better the appraiser is.
Very few homeowners want a general overview of market conditions, since those are frequently available on a national level. Instead, the appraiser should explain the details of a home and why it is different than the one next door.
What should be in a report
An ideal home appraisal should include the write-up about the home - which may vary in length, depending on any relevant information - a statement on market conditions, comparable home sales and a description of the neighborhood, according to Realtor.com.
In addition, negative observations are especially critical since those might have the greatest impact on a home sale. Overall, a real estate appraisal is an opinion, one that judges value based off of the best available data and information.