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Four Major Steps Used in the Real Estate Appraisal Process

Home owners or buyers might at time want to do a true valuation on that particular property. The job will require that you hire a real estate company first. Real estate appraisal is the process of where an option of the market value of a certain property is developed. Some people will also refer to it as the unbiased estimate of the true market value of what a certain home is worth. This is always done when lenders order for an appraisal during the mortgage loan process. This will determine that true market value of the home which will endure that the lender is not overcharged or undercharged. In real estate appraisal there are four main steps one needs to take to determine the true market value of a home. These steps are as follows.

The first thing that you need to get is a bank order. A Bank order contains the necessary details required in the process. The appraisal process will be initiated once the bank order is out because it will have the name of the institution. A bank order is very important hence one should go to a bank that will service them as quickly as possible. Banks that are well known and have serviced mortgages before should be your priority.

The second step comes in handy after the bank order has been released. This is the property inspection. A proper inspection will be done on the home that you need to buy. The inspection will be done at a time when the agents selling the home and the appraiser will agree on. When the inspection is being done the appraiser walks through the whole compound, in and out of the house noting conditions of the property and even taking pictures.

The third strep involves comparing different properties from their recent records. This will aid them with the sales information that they need about the home when the comparison is done. This will also enable them see how it builds up a competition against them. This if often affected by the following factors as lot size, lot location, landscaping, interior finishes and proximity to services.

The last step will be giving the final appraisal report. This happens after a true market value of the home is done. So with time the home might depreciate or appreciate. Some of the things that are in the report given to the client include the value of the home and the address of the compared homes plus their description. In conclusion, new home buyers are able to determine the value of the home because of real estate appraisal.

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