buyer would pay to a reasonable, willing seller for the property. Real estate transactions typically require appraisals because they occur infrequently, and each piece of real property has unique features and characteristics. An appraisal aids in various decision points. Sellers can use the appraisal as a basis for pricing, while buyers can rely on it to gauge their offers. Lenders utilize appraisals to determine how much credit to extend to their borrowers. Keep in mind that borrowers may need to provide additional cash if the appraisal comes in too low, which can sometimes jeopardize the deal.
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, the kind of structures present and how they were built • Improvements made • Comparable sales • Location (type of neighborhood, zoning areas, proximity to other establishments) • Age of property • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also important; however, because a property cannot change its location, upgrades or improvements to a residential property can often enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals with expertise in your region. His or her job is to determine an estimated value by inspecting
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