The National Association of Realtors says that 87% of people who bought a house in 2023 used a mortgage. When you get a mortgage, real estate appraisals are a standard art of the process. That's because appraisals are the optimal way to understand real estate market value.
Without these essential home appraisal insights, you risk having a flawed view of the properties' true value. Interested in learning more about this crucial process? Read on for more information about investment property appraisal.
What is a Real Estate Appraisal
A real estate appraisal is the process of establishing how much a property is worth. Sometimes, the property owner has a flawed idea of how much they could sell their home for. A real estate appraiser is a neutral, third-party professional who offers an unbiased assessment of the property.
With accurate real estate appraisals, the following parties can make informed financial decisions:
- Buyers
- Sellers
- Lenders
Appraisals are so important that they're often legally required to get your mortgage approved. A house is probably the most expensive thing you'll ever buy, so make sure you get a fair price.
Factors that influence Real Estate Appraisals
According to the U.S. Department of Housing and Urban Development, the location of the property is likely one of the most significant factors influencing the final appraisal price. Think of things like:
- How good is the neighborhood
- Quality of the local schools
- Access to amenities
Location is critical, but a good location doesn't guarantee a high appraisal. The appraiser will also consider the quality of the property. If the place is falling apart, the appraisal will be much lower than if the property were in pristine condition.
Current market trends are also a factor. If buyers are flocking to the neighborhood, a property in poor condition could still get a relatively high appraisal value.
Common Misconceptions about the Process
People frequently get confused about the appraisal process. One of the most common mistakes is mistaking appraisals for sale prices. While an appraisal is a neutral valuation of a property, it can still sell for more or less than the stated price. It's always possible that the buyer could charm the seller into a more generous offer because buying a property is a negotiation.
Another common mistake is thinking every appraiser is the same and will reach the same conclusion. Appraisal is a sophisticated skill and without local experience and professional qualifications, an appraiser might miss key factors and reach the wrong conclusion. Don't be afraid to shop around to find the right professional.
Get professional Real Estate Appraisals in Orem
Accurate real estate appraisals are an essential part of any real estate deal. By providing a fair and accurate valuation of a property, an appraiser ensures all parties are correctly informed about a property's true value.
Are you looking for professional real estate appraisals in Orem? Here at PMI Made Simple, we make the appraisal process straightforward yet comprehensive. Using our local expertise, we'll take all relevant factors into account, ensuring a fair and accurate appraisal.
Ready to find out why buyers and sellers alike trust PMI with their appraisal needs? Contact us today, and let's start the process.
