The role of the appraiser is to provide objective, impartial and unbiased views about the value of real property; providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real estate.
Job of the Appraiser - An appraiser’s job is to determine the current value of a property for the potential buyer. Most of the work to determine the value of a real estate appraisal is done during an on-site inspection.
The appraiser will:
Conduct a room-by-room walk-through to appraise the condition of the interior
Walk the length of the real estate property for an appraisal of the condition of the exterior
Appraise the value of any amenities, such as a swimming pool, finished basement, or built-in bar
Note any health or safety code violations for the appraisal report
Record the layout of the property, inspect the square footage, and determine whether or not it’s a single-family dwelling
If you’re buying commercial real estate, a property appraiser may conduct a business valuation to determine market value in much the same way.
Off site, the appraiser may also evaluate the current real estate market, considering comparable properties in the neighborhood, to help evaluate the home’s value or fair market value of the property.
Who hires the Appraiser- Usually, the lender or financing organization will hire the appraiser. Because it’s in the best interests of the lender to get a good appraisal, the lender will have a list of reputable appraisers it has hired in the past to discern the value of a home.
Who pays the Appraisal-The loan agreement normally contains a set value for the appraisal of property. Whoever takes out the loan pays for the appraisal, unless the contract specifies otherwise. Then the buyer pays the appraisal fee in the closing costs. If the sellers are motivated, they may pay for the appraisal to back the asking price, which benefits the buyer by reducing closing and transaction costs.
Think of the appraisal as an investment of your time, money, and effort. It is important to know what your house or real estate is worth, and an appraisal will help you get your loan approval. Hopefully, this step and the rest of the house-buying process will go smoothly.