By Charlie Brown

Appraisals are part of the majority of real estate transactions because it determines the market value of the property. The location of the property and the features of the building contribute to its value that requires a good understanding by trained experts to determine its value. The process of ascertaining the value of real estate is what real estate appraisals are all about. For any kind of real estate transactions, from mortgage loans to divorce and estate settlements and even for taxation, the appraisal reports drawn by professional real estate appraisers form the benchmark for valuation of the property.

Become an appraiser

You can become a real estate appraiser by acquiring a license for which you must pass the real estate appraisal exam conducted by the Appraisal Qualifications Board (AQB) across the United States. It requires good preparation to pass the exam, and you can avail online guidance from websites like www.appraisaltests.com/ that help to prepare for the test. This and other similar online resources conduct practice tests in line with the latest AQB exam standards and prepare students who want to pursue a professional career as an appraiser of real estate. On completing licensing coursework together with specified internship hours, appraisers receive a license from the state to start their professional career.

The need for appraisal

Since it is imperative to determine and establish the market value of a property, appraisals have become almost an integral part of the home buying process. It provides a basis for buying or selling any property that gives the satisfaction to buyers and sellers of bidding for property according to its worth. Appraisals provide a basis for judging the market value of the property backed by sound reasoning and is acceptable to all parties including lenders. Lenders depend on appraisals for investing in any property to understand the recoverable value of the property concerning the market price. However, an appraisal is much different from comparing rates in the market.

Appraisals are not priced comparison

Comparative Market Analysis or CMS is also prevalent in the real estate market, but you should not confuse it with real estate appraisal. The purpose of CMS is entirely different because it is a compilation of data derived from MLS or Multi Listing Service. The data of CMA helps sellers and buyers to determine a realistic offering and asking prices. Appraisals are valuation reports compiled by licensed appraisers, which is of more importance to lenders who decide whether to lend money against the property.

Appraisals are different from a home inspection

Appraisers take into consideration many factors, from the valuation of the land to the current market trends to determine the value of the property. It is completely different from home inspection reports that cover the physical aspects of the building only based on the appliances and outlets. Plumbing, HVAC, drainage system, landscaping, etc. form the basis of home inspection reports that indicates the level of comfort of living.

Buyers find appraisals more useful as it helps them to create mortgages for buying any property.

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