changing. A property that sold for $300,000.00 7 years ago could be worth far more or less than that amount today and also could have been updated or degraded since the last time it sold. An appraisal helps in various decision points. The seller can use a recent appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to determine how much money to lend to their borrowers (provided their income qualifies for the loan).
The important factors in a house appraisal are:
• Dwelling type (e.g., one-story, two-story, split-level, factory- built) • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments • Age of property • Amenities • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. Most lenders are required to use outside independent real estate appraisers so a bank officer can't demand what price to appraise the property at.
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