Looking to buy or sell property? Understanding real estate valuation is something that you should consider as this is a crucial step toward exploring the real value of a property you are planning to put up in the market or one that you are making an offer for. RDC Appraisals can help you with your residential appraisal requirements, whether you are planning to sell, refinance, buy, or invest in a property. Below are important things you should know when it comes to home appraisals:
- An appraisal is basically a professional’s best opinion as to the value of a property as it stacks up against similar homes in the market. Although not an exact science (because different appraisers use varying approaches to determining property value), real estate valuation is something that is widely used in purchase and sale as well as refinancing transactions. When it comes to purchase-sale transactions, appraisals are mainly used to determine whether or not the contract price for a home is appropriate for its location, features, and current condition. In refinancing, a residential appraisal helps assure lenders that they are handing borrowers the just the right amount of money for the home’s worth.
- The appraisal value of a property can be influenced by current market trends as well as recent sale values of similar properties. Appraisals also take into account the amenities available within the property as well as the number of beds and baths, the square footage of the home, as well as the functionality of its layout and floor plan.
- To ensure a thorough evaluation of a property, a professional appraiser must conduct a comprehensive visual inspection of the property’s interiors and exteriors, noting any feature or condition that could affect the value of the property adversely.
- For homebuyers under contract, a residential appraisal is usually one of the first steps that must be completed toward the closing process. A transaction should only proceed when the appraisal comes above or within the contract price as deficient appraisals could derail or delay the transaction. A low appraisal, however, can be a great negotiating tool for you to convince a seller to reduce your contract price.
- For home sellers, on the other hand, real estate valuation is a great tool for gauging the fair market price of the property you want to sell as well as to decide on improvements or repairs that could further enhance the home’s or property’s value.