Real estate appraisal is a vital component in the property market, known to industry professionals as real estate valuations. It informs a high stakes negotiation process between the buyer and seller by providing an accurate and detailed assessment of a property’s worth. Real estate appraisal is conducted by a certified appraiser who uses various methods to determine the market value of a property. The factors considered include the desirability, habitability and versatility of the property, its physical characteristics, condition, and geographical location.
The appraisal process begins with an inspection of the property, where the appraiser conducts a thorough walk-through to check the general status of the property.
The findings from the inspection are then further supplemented with knowledge about the local real estate market, including comparable recent sales in the area, current market trends, and other factors that could possibly influence the value of the property. The collected data is then compiled into a comprehensive and detailed report which outlines the estimated value of the property. This report is thus crucial for financial institutions in their decision-making process when providing mortgage loans, and for potential buyers or sellers to make well-informed choices.
