What is an Appraisal?

An appraiser provides an evaluation that produces an opinion of value. There are three "common approaches to value" which assists the appraiser come to this opinion or valuation. The Cost Approach is one of the processes that real estate appraisers use to find the worth of a home; it involves finding what the improvements would cost without physical deterioration, plus the land value. The Sales Comparison Approach deals with finding similar houses in close proximity and figuring out the value based on making a comparison of those homes to the home being investigated. The Sales Comparison Approach is commonly the most accurate and best indicator of worth for a house. One of the least common approaches in appraising houses is the Income Approach, which is commonly used to find the value of a property based on what an investor would pay based on the income produced by the building.

What does an Appraiser do?

A key party in finding the worth of a house, a State Licensed or Certified Appraiser makes an unbiased opinion on the value of a property used in a real estate transaction. A complete analysis is shown by the appraiser in a report.

Why would a person need a home appraisal?

There are a lot of reasons to obtain an appraisal from ACE Appraisal Service (231) 839-3833, with the usual reason being for mortgage transactions. A few other reasons for ordering an appraisal report include:

  • To get a loan.
  • If you would like to reduce your property tax obligations.
  • To officially display the replacement cost of PMI.
  • To contest inflated property taxes.
  • To handle an estate.
  • To give you a negotiating tool when purchasing real estate.
  • To determine a reasonable property value when selling real estate.
  • To determine property value for divorce settlement.
  • In the event of bankruptcy.
  • Because an official agency such as the IRS requires it.
  • If you ever find yourself in a civil case.

How to Choose an Appraiser