Nov 7, 2009
Importance of Home Appraisal – Best Ways of Securing your Investment
If you have plans of purchasing a home or property, there are certain procedures in real estate that you need to know first and foremost. Home appraisal is one of the initial procedures used in the transaction to ensure the welfare of both home sellers and home buyers. Therefore, before making finalization to your plans, it is best to follow the important standards in order to get the most out of your investment.
What is home appraisal?
Also known as real estate appraisal or property valuation, home appraisal is a practice of making the necessary assessments in order to determine the quality and market value of the property for sale. It is important to note what the qualifications of a certified appraiser are.
Home appraisers are also referred to as valuation surveyors who undergo internship and extensive coursework in order to get the certification imposed by different states for their real estate sector. In the process of home purchase, home appraisers are supposedly third parties who have no financial connection with any of the parties involved in the transaction. Appraisers are highly trained to make accurate and reliable appraisal reports that include the market value of the house based on its structural makeup, possible problems found in its condition and other important features that the appraiser finds in his evaluation.
There is a difference between the work of the home appraiser and inspection which is often mistaken by most home buyers. Basically, home inspectors are professionals you hire to accompany you with the home visit in order to check the condition of the house. Inspectors check certain areas and systems which are potentially problematic and may need immediate repair. They include the plumbing, heating, electrical system and important regions of the house like the kitchen, ceiling, roofs and the like.
Home appraisers on the other hand may include the general issues they may find but do not go through the details which home inspectors do. They give the overall market value and the expected average sales time of the property. Appraisers likewise include assessment as to the appreciative value of the house based on its location.
What are the methods used for appraisal?
So how do appraisers come up with their report in assessing the property’s market value? There are actually two common methods used to appraise properties.
- Sales comparison approach. This is based on the notion that no two properties are entirely the same. The difference in the market value usually lies with the location of the property. Thus, even if two houses are the same in its structure, the market value is still different based on the kind of venue it is situated. You may find one property is more expensive sine it is located in a place where its appreciative value is more likely to increase while the less costly property is located in a declining or undesirable place.
- Cost approach. This method is applicable for new properties when appraisers determine the market value based on its repair costs when structures are supposedly replaced or destroyed.
Home appraisal gives you the accurate evaluation of the overall quality and value of the house to know if the asking price is actually accurate or if you are a pending victim of an overpricing fraud.
Watch the video related to home appraisal
A brief description on how to read a general purpose real estate appraisal in Houston and Austin Texas. These appraisals are written on general purpose forms and typically used for non mortgage or financial transactions. Visit us at www.cpappraisals.net for more information.
Help answer the question about home appraisal
is there a way for Canadians to get a free home appraisal?
is there a way for canadians to get a free home appraisal? Are there any online sites where that can be done? Is there a way that exists for it to be done?
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Your loan documents should have included a page telling you about your right to a copy of your appraisal and how to go about obtaining one. Try looking through your document copies for thatinformation. Although, remember, a 2 year old appraisal is pretty meaningless today, unless you need proof supporting the value and price you paid for some reason unrelated to trying to sell it now or value it for refinance.
Just make sure the house is free of clutter! Fix any visible damages and paint walls that appears old and dirty, paint does wonder as people say. Repair or update any outdated amendities will greatly improve your value of the home. Exteriors too!
Appraisers normally start out in a radius of about a mile of the property being appraised. If nothing have sold in that radius they will extend the radius.
Because you added certain things to your house, does not necessarily mean that what you added will give value or increase the value of your house.
If you upgraded the landscape to what the other landscape is in the neighborhood then that will add little value to the property.
Your remodeled kitchen and bath will do that.
The REOs sold in your area will be the established criteria for an appraisal in your area. Your appraiser might list that in his appraiser report which might be of some benefit, but the value of the property is what the lender/bank will eventually established the value of your property.
Your property might have lost a little value in the year that you have owned the property.
I hope that this has been of some benefit to you, good luck.
"FIGHT ON"
Pay the $30 because no site can give you a real estimate on a mobile home they have not seen. Is it in a park or on some land?
Truly, I was in the business of selling mobile homes for about a year and none of them are worth the money. You are much better off paying rent on an apartment and saving your money until you have a down payment on a real bricks and mortar home.
This is all due to the HVCC rules. The lender will only accept appraisals from their own Appraisal Management Company which means if the lender declines your loan you need a new appraisal to go with a different lender.
There is a petition to change the current HVCC law. Please sign up and show your support here http://www.hvccpetition.com/SignPetition.aspx
You can, but if the appraisal is over 90 days old, it is no good. Also, the previous lender has to transfer it over, which you have to request in writing.
Good luck!
The actual appraisal itself usually never takes more than a full days work once the house has been visited, it's more scheduling it into the appraiser's work load and getting him out there that takes a while. When I bought my house, that process took 3 days total.
The room may or may not bring up the appraisal by 10K. IF proper permits were not pulled then you are in for a lot of trouble and can even be made to remove the addition.
You are mistaken about what it takes to get PMI stopped, here read this
How Do You Cancel or Terminate PMI?
Cancellation
Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.
I don't think you can do that yourself, you'll need a licensed appraiser. It doesn't cost that much, maybe $220, at least that's what it cost me here in PA. It also doesn't take that long, maybe a 1/2 hour or less. Check out the yellow pages as well as the Better Business Bureau to be sure. In the end you should get a detailed report about your property as well as the surrounding area.