Real estate appraisals are very common in the housing market. An appraisal is generally carried out to determine the value of a property on the market. Any property can be appraised including commercial properties, condominiums, vacant lands, fully-built houses, and any other kind of real estate property. Basically, the main purpose of a real estate appraisal is to help a person in making a decision about whether he or she should go ahead with the deal or not based on value. When a seller puts up a property on the market, they must get an appraisal to properly determine the value.
Real estate appraisal is generally carried out by a private real estate appraiser. These are qualified, certified individuals who will visit the property and then determine its value based on a variety of different factors. The appraiser is an objective third party, which means that you can’t hire your own real estate agent to help you carry out an appraisal. It has to be someone with no financial or any other connection to the transaction that’s about to take place.
The Real Estate Appraisal Report
Professionals who carry out house appraisals are required to produce a real estate appraisal report. This includes a detailed analysis of the property along with a comparison to three other properties of a similar value. The appraisal report will also include an analysis of the overall real estate market. Notations will be highlighted regarding serious flaws in the property such as poor access to the gate, etc. They will also give you an estimated figure regarding how much time it will take for selling off the property. The real estate appraisal report serves as a very important factor in determining the value of a property.
A residential appraisal in Toronto is generally carried out using a variety of different methods. Two of the methods used include the sales comparison approach and the cost approach. The latter is generally useful for new properties whereas the former generally relies more on comparisons to other similar properties.
Banks or prospective buyers might request residential appraisals before determining whether to give you a mortgage loan or whether to buy the property from you. That’s why appraisals play such an important role in the residential and commercial real estate market.
The author is an experienced writer with great understanding of real estate appraisal in the City of Toronto. Visit http://aedisappraisals.com to know more!