All the instances of purchasing a house usually involve the seller’s asking price and the actual value of the property. In most cases, the seller’s asking price will be dictated upon by the prevailing conditions in the market and there is always the possibility of the seller asking for a price which is either higher or lower than the actual value of the property. To harmonize the prices and for tax purposes, it is the duty of the appraiser to determine the actual value of the property. A property appraiser is thus responsible for locating, identifying and justly valuing all property, both personal and real.
It is important to note that it is not within the mandate of the property appraiser to establish the price at which the property will be sold at. Their mandate is limited to studying the transactions and appraising the property as required by the law. Of great concern during the property appraisal process are the recent value of the homes in that area and the actual condition of the home at the time of appraisal. Appraisers will thus take several factors into consideration, including but not limited to the following-:
The exterior of the home – certain home sellers are fond of revamping the outward looks of their homes just before they put up the property for sale. They do this so that they may create a perception of greater value in their homes in the hope of attracting higher prices for the property. In as much as there is nothing wrong in revamping the home to increase its perceived value, there are certain unscrupulous sellers who will use this technique to hide serious flaws in the structural components of the property. It is the duty of the property appraiser to inspect the exterior of the home and ensure that it is valued correctly.
They assess the structural basics of the property as well as the condition and the size of the property in the surrounding areas. They look at the structural integrity of the roofs, walls, and the foundation to determine if they have been compromised in any way. They will check to see evidences of cracks, leaks, water damage or any other structural defect that might hurt the integrity of the entire structure. They will also check on the possibility of the structure being expanded should the new owner feel like doing so.
Interior of the home – just like with the exterior, home sellers will in most cases soup up the interiors of their properties in order to hide defects that might potentially lower down the final sale value of the home. The property appraiser will also check for the interior conditions as well. While doing so, they will take into consideration the overall layout of the home, the total number of bedrooms and bathrooms, the condition of the materials on the surface of the interior, and also the total square footage of the property. Also to be considered while valuing the interior of the property is the various utility systems such as the drainage, plumbing and electrical systems.
Extras Features – In addition to checking the interior and the exterior aspects of the property, there are also other extra features that the property appraiser takes into account. These are not limited in any way, but may include factors such as the presence of a pool and its current condition, the likely improvements which can be done to the house, the overall condition of the area in which the property is located etc. All these will have to be included in the final appraisal report by the property appraiser.
Who hires and pays the appraiser?
In most cases, the financing organization or the lender will hire the appraiser. This is because it is in their best interest to know the value of the property so as to determine if the requested loan is justified. Without the lender not having the right information with regards to the correct value of the property, they are likely to give less or more lending and these come with significance consequences in the future.
Even though the lender is the party responsible for hiring the property appraiser and they will always have a list of appraisers they can contract whenever they need one, they are never the party responsible for paying the appraisal fees. The person responsible for meeting the appraisal costs is whoever is taking out the loan. In most cases, they will not have to pay for the appraisal out of their pockets, since the loan with they apply for should include the appraisal fees as well. In some cases, the seller of the property may feel motivated to pay for the appraisal, but they are under no obligation to do so.
Whenever you are thinking about calling a property appraiser, think of it as an investment of time, money and effort and not as an unnecessary expense in the home selling or buying process. Other than knowing the worth of the property, getting loan approval also makes the work of property appraisers very important.