Real Estate News And Views

Realestatelicense.com has created this blog to keep you informed on recent real estate news, views, and topics. Real estate is a very dynamic field. Everyday there's something new and exciting happening in the world of real estate. Use this blog to stay on top of current real estate events, news, and views and support your real estate license and career. As a licensed real estate professional, you need to know this information.

Work with a Licensed Real Estate Appraiser Before You Buy

You just located your dream home. Is the $350,000 asking price fair? Protect your personal interests by seeking the opinion of a real estate appraiser who has successfully completed their appraisal license course..

Protect your interests

If the real estate appraisal reveals your dream home is worth far less than the asking price, negotiate with the seller. If the seller is firm, consider walking away. If you pay $350,000 for the property now, but it appraised for only $275,000, how will you break even if you need to sell? Depending on where you live, market conditions can change and leave you with far less than what you originally paid on your investment. A real estate appraisal will help you make a more informed decision before you buy.

You can't get a loan without it

If you need to finance your home purchase, your lender will require a real estate appraisal before you can purchase the home. Just like the buyer who wants to protect their best interests, so does the lender. A lender does not want to lend a buyer more money than the home is worth.

What to expect

When the real estate appraiser arrives, they typically look at the land, all structures, any improvements and the surrounding neighborhood. They will also review county records (and any other necessary documentation) for data of comparable homes nearby. Based on the collected data, the appraiser provides their unbiased opinion as to the value of the property in the form of an appraisal report. The appraisal report will include three important numbers: the approximate value of the land, the approximate value of the structures on the land and the property's approximate total value. The report should also include an overview of your home, neighborhood and current comparable sales in your vicinity.

Depending on the real estate appraiser's experience and schedule, an appraisal can typically be completed in a day or less for a residential property. The cost for a real estate appraisal will vary from market to market, so contact appraisers in your area to find out their rates.

Selecting a real estate appraiser

If you're working with a licensed real estate agent, they should be able to provide you with a referral. Additionally, your lender may have a panel of real estate appraisers to complete the job.

To find your own appraiser, look in the phone book or online at state and county appraiser websites. Another option is to contact professional associations like the American Society of Appraisers or the National Association of Real Estate Appraisers. Make sure your chosen real estate appraiser is licensed by the state and demonstrates in-depth knowledge of the appraisal process. An appraisal report provided by an unlicensed appraiser is not valid and won't be taken seriously by any lender.

To buy or not to buy

Once the appraisal report is available, thoroughly review the information with a licensed real estate agent. Their experience and advice should help you make the best decision on whether purchasing the home is a smart or rocky investment.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: real estate appraisal school