An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.
The important factors in a house appraisal are:
• House style (e.g., one-story, two-story, split-level) • Age of property • Size • Features (including design) — quality of materials used • Improvements made • Lot size and lot amenities • Views • Schools • Location— type of neighborhood, proximity to schools, parks and other establishments • Comparable sales • 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 the property often can 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 the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price. Having a pre-listing appraisal will give a seller the chance to see how your future buyer's lender's appraiser will interpret the recent sales in your area so you can be more confident about your listing price.
8
Powered by FlippingBook