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Real estate is expensive and changes hands much less frequently than most commodities. For this reason, the market value of any particular property is often difficult to determine. The role of a real estate appraiser is to help their clients to systematically determine the market value of a property, which is one of the first steps in any real estate transaction whether you are a buyer, seller, lender, or other interested party. Here are some further details about the role of a real estate appraiser.
Appraisers gain their title by being appointed by judicial or quasi-judicial authorities in their local jurisdiction. The services of a skilled appraiser are highly valued by banks, lenders, and other parties who care about the value of property because with their expertise, they are able to wade through the many significant factors that affect the market value of a home such as its size, structure, design, and location, and arrive at a knowledgeable market value estimate.
After determining the value of a property, an appraiser provides you with a written report, which is then used as the basis for mortgage loans, taxes, settling estates, divorces, and more. The report is sometimes also used by a buyer and seller to determine a sale price. However, the most common usage of appraisers in the United States is for mortgage valuations: banks need to know how much your potential home is actually worth on the market before they agree to loan you the money for a mortgage.
In the unfortunate event that you default on your payments and are unable to pay back your debts, your lender needs to know they can sell the property for enough money to cover the amount they loaned you, and they confirm the amount through the work of an appraiser. Because of the importance of accurate appraisals, most appraisers use a standardized form, such as the Uniform Residential Appraisal Report, as a guideline for their valuation.
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