Real Estate Appraisals

One of the most critical parts of getting a mortgage is the Appraisal. The purpose of an appraisal is to confirm the home value for the lender.

An appraisal is a professional estimate of the value of the property that you are planning to purchase.

According To Wikipedia:

Real estate appraisal, property valuation or land valuation is the practice of developing an opinion of the value of real property, usually its Market Value.

The need for appraisals arises from the heterogeneous nature of property as an investment class: no two properties are identical, and all properties differ from each other in their location – which is one of the most important determinants of their value.

So there cannot exist a centralized Walrasian auction setting for the trading of property assets, as there exists for trade in corporate stock. The absence of a market-based pricing mechanism determines the need for an expert appraisal/valuation of real estate/property.

If the appraiser’s opinion is based on Market Value, then it must also be based on the Highest and Best Use of the real property.

Appraisal Related Links / Resources:

What Do Appraisers Look For When Determining A Property’s Value?

Most people are surprised to learn what appraisers actually look at when determining the value of a real estate property.

A common misconception homeowners generally have is that the value of their home is determined after the appraiser has completed their physical property inspection. However, the appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property.

…..(read more about What Do Appraisers Look For)

Five Myths About Home Values

Regardless of whether home prices are going up or down based on outside economic factors that impact housing markets, appraisers have continued to follow a standard set of guidelines and best practices to determine values.

The following questions / myths about real estate appraisals should help clarify why your property’s value isn’t necessarily where you think it should be:

…..(read more about Five Home Value Myths)

Understanding The Difference Between A Neighborhood Comp vs Actual Appraisal

Why is there such a difference between what my appraised value is and the price similar homes are selling for on my street?

It’s a great question, and you don’t have to be a mortgage professional or a real estate agent to understand the answer. The distinction lies in the purpose of the two valuations and who is responsible for creating them.

…..(read more about Five Home Value Myths)

How Do Mortgage Companies Value A Property That Hasn’t Been Built Yet?

It’s obviously easier to picture the process of estimating value on an existing property in a neighborhood that has a history of home sales, but the task of determining the value on new construction projects does pose some challenges.

Appraisals on homes that haven’t been built yet generally require the contractor and home buyer to supply more documentation in order to get a more accurate estimate of the property’s value.

…..(read more about Valuing A Property That Hasn’t Been Built Yet)

how can we help you?

Contact us at619-858-4784. We are happy to answer any questions you have.

Great professional service

Craig was instrumental in me and my wife buying our first home together. I had a foreclosure, due to being laid off for a year, and without his assistance and knowledge of the buying and credit process, we would still be renting to this day. I believe he went above and beyond his basic duties, he spent extra time working with me to help clean up my credit to insure we would get the best interest rate. He was able to get us a great rate, even with my low score, and we were able to move into our new home.

Over the next few years, continuing to work with Craig we were able to increase our credit score and refinance our home a couple of times with lower interest rates each time. When we were ready to purchase a new home, he worked with us to insure the price was within our current budget and was able to secure a wonderful loan. He is also very knowledgeable in the VA loan process to insure a smooth transfer from one home to the other.

We are very pleased with the service and professionalism Craig provided us and will continue to work with him for all of housing finances in the future.

whitleyr1
Client, Oceanside, CA