Whether you’re buying or selling a property, the appraisal is an important part of the process to help you determine its fair market value. So, if you’re in need of an appraiser for your upcoming transaction, be sure to give us a call at Victor Gesmundo Realtor!
Here are just a few benefits of working with a professional real estate appraiser in Las Vegas, NV and a bit of what you can expect out of the process.
How does an appraisal work?
Professional real estate appraisers are state-licensed individuals who have completed a significant amount of training and gained practical experience to become familiar with their markets. Lenders often have appraisers on staff, or at least contract with independent appraisers. If your transaction allows you to choose your own appraiser, the lender might require the results of that appraisal to be reviewed before the information in it can be officially accepted.
The appraiser should always be someone who has no financial stake in the deal and no personal connection to any party involved. You will pay for the appraisal as part of your loan application.
There are two main methods for appraisals for residential properties. The first is the sales comparison approach. In this method, the appraiser determines the fair market value of the property by comparing it to other similar properties found in the area that have sold recently. You won’t find any properties that are exactly alike, so the appraiser will have to take some of the differences of the properties into account, but the similarities that exist should be striking enough that they provide a reasonable basis for comparison.
The second approach is the cost approach, which is ideal for new properties that had clearly defined building costs. The appraiser can then estimate how much it would cost to replace the property if it were somehow destroyed.
What’s included in an appraisal report for residential properties?
Appraisal reports are extremely detailed documents. On a standard residential report, you can expect thorough information about the following:
- An evaluation of the general real estate market in the area surrounding your property
- Statements about any issues the appraiser believes could be harmful to the value of the property
- General details about the property and information comparing it to three similar properties in the area
- Notes about some serious flaws associated with the property, like a deteriorating foundation
- Average sales time for the property in question
Ultimately, the appraisal is crucial for determining a fair selling price for the property, and is a good tool for buyers to ensure that they are getting a reasonable deal in their purchase. Lenders also count on appraisals to determine how much money they will be willing to lend for a given purchase.
To learn more about the appraisal process and to talk to a professional real estate appraiser in Las Vegas, NV, we encourage you to contact our team today, and we’ll be happy to answer any questions you have.
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