Many might have heard of real estate appraisal services, but do not know how they work and how they can help? The video above helps shed light.
A real estate appraiser visits a property, takes information about it, researches the neighborhood and the property market in that area, and writes up a report containing an estimate of the property’s market value. It’s not just an arbitrary number but a formula that compares the subject property with other properties (called “comparables”) in the same neighborhood.
People use real estate appraisal services for different reasons. If you’re buying or selling a home, an appraiser can help you determine what to offer or what to ask for when negotiating the price. If you’re taking out a home loan and looking to sell your house later, the law usually requires that you get an appraisal so the lender knows the Loan to Value (LTV) figure to lend.
Insurance companies also utilize appraisal services to set insurance premiums at appropriate levels. If a homeowner doesn’t have an appraisal and something terrible happens to the house through fire or flooding, it could be challenging to determine the exact loss.