A real estate appraiser is one who establishes the market price of the property. Therefore, he thoroughly studies the characteristics and location of the home to determine its value.
Additionally, the real estate appraiser can be an architect, industrial engineer, or, if applicable, an agricultural engineer. Thus, In a purchase-and-sale transaction, an appraisal is used to determine whether the home’s contract price is appropriate considering the home’s condition, location, and features.
Who Hires a Real Estate Appraiser?
The corresponding financial institution hires the real estate appraiser. It can be for sale or mortgage reasons. However, it may also be the case that the owner himself wants to know the value of his home in order to be able to offer to the possible interested parties. We can say that his report can affect real estate marketing.
Banking entities have their own appraisers. Hence, in case of requesting a loan for the purchase of a property, it is not necessary for the usual person to look for a real estate appraiser. In some cases, the bank itself provides it.
Any future mortgage will need a real estate appraisal. On the other hand, the taxes paid the financing for your purchase, depends on it, as well.
What Does a Real Estate Appraiser Do?
When buying a home, it is common to request a real estate appraisal to know the market value of the property. In addition, there are also cases in which it is the owner of the property himself who decides to appraise his property. Therefore, he establishes a sale price based on the opinion of a professional. Thus, you can make your property known to potential real estate buyers.
Normally, banks have a fixed schedule of appraisers to whom they request to carry out the appraisal. The appraiser provides objective, impartial, and unbiased opinions about the value of the real estate property. In other words, he provides assistance to those who manage, own, sell, invest in, and lend money on the security of the real estate.
Appraisers gather a series of statistics, facts, and other information regarding specific properties, analyze real estate data, and develop value opinions. Each appraisal assignment challenges the real estate appraiser’s ability to put analytical skills into practice, exercise sound judgment, and communicate effectively.
How to Become a Real Estate Appraiser?
First, when requesting the property appraisal, the appraiser will provide the client with the stipulated price for the appraisal services. Once the owner has accepted the terms, the professional begins to do their job. Thus, your first step is to study and compare the specifications of the home. The owner has given you these specifications, and some of them are in the cadastral registry.
In the same way, he compares and studies the property title with the data found in the town hall. Once this process is completed, the appraiser goes to the house. He considers the details of it in its entirety. Besides, he does a thorough field investigation on the location and its adjacency. Thus, he can evaluate the price of the property by the location rules of that state.
Finally, he executes his task by calling each of the real estate institutions to compare the prices of the properties that are for sale and that have certain similarities with the owners. Having everything ready, he prepares the final report, signs it, and proceeds to deliver it, either to the financial institution that requested it or directly to the client.
What Factors Should We Consider When Conducting a Property Appraisal?
The real estate appraiser has to take into account several important factors in order to carry out his work. We name some of these factors in the following.
1- Location
The geographical location of the property is totally important. Its price can be high or low considering the location. You can imagine the difference between the properties that are in the center of an urban area or a rural location. Thus, the houses may have similar characteristics, but it is the location and proximity to public agencies and services that will give them the most monetary value.
2- Condition
This is also something vital and that all people take into account. If the facade is impeccable, it has green areas. Furthermore, the cleanliness is remarkable, the building is totally safe, and the property is good-looking. Hence, it will have many purchase options.
3- Ventilation and Orientation
This refers to whether it has natural lighting, green areas around it, and the place where the windows are located. Therefore, it can protect its owners from any weather, whether cold or heat.
4- Surface
The measurement of the square meters of a property is something important to take into account. Not all of these characteristics cost the same. However, it also depends on the tastes of the client. Thus, these are the first things that are taken into account when evaluating the home.
5- State of the Building
The state of the building is very effective. The building with rehabilitation, with elevator, or the state of the facade are playing an important role when you decide to buy a home. Additionally, if it has passed, the technical inspection of vehicles is important, as well.
6- Orientation, Ventilation, and Quality of the Windows
Orientation of the house depends on the location of a property. A house facing the west in a cold area of the country doesn’t have the same value as in a hot area. In other words, they get different good natural light or views.
In addition, the quality of the windows is essential. It means that they provide good insulation, both from outside noise and to protect it from both cold and heat.
7- Recent Sales
If there is a lot of demand for sale in the area of the property, the value of it rises considerably. For people, the fact of noticing that in a locality, many houses are being acquired means that the price is accessible. Besides, it is a good area to live in. Hence, combining these two aspects makes both the real estate appraiser and the owner reach a reasonable price.
All in all
We thoroughly explained who a real estate appraiser is. Besides, we talked about how you can become a real estate appraiser. Additionally, their responsibilities and anything you need to know about this job opportunity were mentioned in this article.