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Residential appraisal is a critical component of any real estate transaction that involves any mortgage loan. Someone buying your home and needs to get a mortgage loan will need to have an appraisal done or if you are in need of refinancing your mortgage you will need an appraisal done. Residential appraisal is the unbiased opinion on the value of a residential property by a third party. An appraisal should be completed as a requirement by the mortgage lender when you require refinancing for your mortgage. An appraisal is completed in a transaction when someone is buying a new home to make sure that they don’t overpay for it. Residential appraisals are generally performed by a licensed or state certified appraiser to avoid fraud and bias.
The Process Of Residential Appraisal
Several factors influence the residential appraisal value include current market trends or the comparable appraiser of the residential properties selected. An exterior and interior inspection of the property is conducted by the appraiser to take note of any factors of that influence the value of a property. The appraiser will complete the report on a standard report that is required by the appraisal jurisdiction. The report will involve information on comparable sales, a street map, a building sketch photos of the front back and a street scene of the home. The appraisal cost is taken up by the homeowner.
Information For Home Sellers And Home Buyers
A loan may not be provided if a residential appraisal shows the value to be less than they offer to purchase that was made. When the appraisal value of a property is lower than the offer you had made to purchase you can negotiate for a lower purchasing price. Low appraisals will mean that are seller will reduce the price of the property being sold. If you are financing your mortgage and looking to access some equity in the home and appraisal value is very important. A residential appraisal is a critical process in a real estate transaction and should be taken seriously.
How To Choose The Residential Appraiser
In order to place the appropriate value on a property you will require to have an official appraisal during the property buying process. When you are borrowing money from a lender in order to purchase a residential property the lender will require a residential property appraisal before the lender agrees to the amount of loan you have requested. The first thing to do when looking for a residential appraiser is to check if they are licensed this is the basis that the law has provided to eliminate and prevent fraudulent and inflated property appraisal reports. A licensed residential property appraiser should always adhere to the set rules and regulations and ethical and professional guidelines provided by the appraisal foundation. There are three different appraisal approaches used this include;the residential sales comparison approach, the income capitalization approach and the cost approach.