Facts About Sacramento Real Estate Appraisal
Just a fact for everyone who would like to seek help from local appraisal companies or the so called, land or property valuation. In a nutshell, Real estate appraisal, property valuation or land valuation is the process of valuing real property, it may be an arable land, commercial or even residential homes. According to some real estate experts, the value usually sought is the property’s Market Value. Appraisals are needed because compared to, say, corporate stock, real estate transactions occur from time to time. Not only that, but every property is different from the next, a factor that doesn’t affect assets like corporate stock.
In addition to the aforementioned statement, location of a property has a very important role in determining the value of a particular property. So a centralized Walrasian auction setting can’t exist for the trading of property assets, such as exists to trade corporate stock (i.e. a stock market/exchange). This product differentiation and lack of frequent trading, unlike stocks, means that specialist qualified appraisers are needed to advise on the value of a property.
According to realtors, the appraiser usually provides a written report on this value to his or her client. These reports are used as the basis for mortgage loans, for settling estates and divorces, for tax matters, and so on. Sometimes the appraisal report is used by both parties to set the sale price of the property appraised.
You may wanted to ask if you need to have a license to become an appraiser? Well, in some areas, an appraiser doesn’t need a license or any certification to appraise property. But most counties or regions in California require practicing appraisers to have licensed or certification that comes from the Department of Real Estate (DRE). You need to have that surveyor certification to be able to start appraising properties. If the appraiser’s opinion is based on Market Value, then it must also be based on the Highest and Best Use of the real property.
It is an open book to everyone that the task of an appraiser is to help establish a property’s market value. They make the right decision that will be beneficial to property owner and even to the buyer as well.
On the lender’s part, they will require an appraisal when the homeowner would ask to use a home or other real estate as security for a loan, the homeowner could do this through asking help from any lending entity like banks or other financial firm found in any part of the region.
But piece of advice from most lenders, they said that don’t confuse a comparative market analysis, or CMA, with an appraisal. Real estate agents use CMAs to help home sellers determine a realistic asking price. Experienced agents often come very close to an appraisal price with their CMAS, but an appraiser’s report is much more detailed–and is the only valuation report a bank will consider when deciding whether or not to lend the money.
More on Appraisers and Appraisals
Appraisers are licensed practitioners tasked to appraise properties for loan purposes. You can be an appraiser after completing coursework and internship hours that familiarize them with their real estate markets.
Lenders such as banks or other financial firms could hire an appraiser and be part of their manpower to appraise properties. Homeowner has the right to choose an appraiser and If you have done choosing the appraiser, you may start doing the transaction for your convenient.
The appraiser should be an objective third party, someone who has no financial or other connection to any person involved in the transaction.