Websites like Zillow.com claim to provide estimates of what your home is worth, and while this estimate might be somewhat accurate, the only way to geta true assessment of the value of the home is to have an appraisal done by a certified third party professional. There are a few situations where an appraisal is mandated, such as when youre buyin and selling a home, refinancing or applying for a loan using real estate as security.
The appraisers report can help determine a selling price, and it can provide the owners with information about problems that are devaluing the home's worth as well as fgive insight about worthwhile fixes. Appraisals are usually conducted after an offer has been made or it is done to determine the initial value of the property as part of the selling process. Keep in mind that to a approve a loan, banks typically require an appraisal using their preferred appraisers to ensure accurate assessment, even if you've already had one done by another party.
The appraisal offers side by side comparisons of the home along with three (3) other similar properties and an evaluation of the overall real estate market in the area. The appraisal will also note flaws in the property, such as crumbling foundation and offer specific dimensions pertaining to the home, such as square footage and the size/number of rooms.
The appraiser will also research the areas cost of labor and local building costs to determine how much it would cost to erect a similar property in present economic times. Things such as location and nearby ameniteis are taken into account to increase or decrease the value of the home _ for instance proximity to schools, or within a neighborhood, while being situated near a busy highway or isolated for the community could be a decrease. These factors, among others, will be used to estimate an approximate time frame for selling the home which is also included in the appraisal.
So if you are on the fence about putting your house on the market and want to be sure that your property will appraise for a loan at the price you think it is worth, it may behoove you to get an appraisal done this way you will know how the banks are looking at your property financiallly.