The Purpose of Interior Field Appraisals
Interior Field Appraisals involves evaluating the physical characteristics, as well as any comparable properties nearby, in order to determine the fair market value of a property. Appraisals can be used to prepare a Property Check, a Statement of Valuation (SV), or a Property Assessment (PA). Most buyers use a Property Check to determine if they are indeed able to buy a house at the fair market value. A Property Check provides the buyer with important information concerning the home’s marketability. The appraised value will determine whether or not you can qualify for financing from a bank. Appraisals also play an important role in the negotiation process.
Appraisals have been used since the 17th century to determine property values. They are commonly used in combination with an independent appraiser prior to a sale or mortgage agreement and they give both the buyer and the seller an invaluable tool for comparative analysis. Since then, they have become widely accepted tools by both individual home buyers and real estate professionals. The reason for their increasing use is their ability to provide a more complete picture of a property’s true value.
Real estate professionals use Interior Field Appraisals to determine the value of comparable properties within a particular geographic area. This is accomplished by finding all of the comparable properties that are located within a one hundred square mile radius of the property being appraised. The use of an Appraisal is especially important when a home is for sale. When selling a home through an agent involvement, it is imperative that a true market value is determined prior to listing it for sale.
Comparable market appraisals use several unique techniques such as taking into account the location and condition of the property, any improvements that have been made, and any improvements that have been taken away since the last comparable sale. A good Appraisal will allow a home seller to better understand the value of their home, which allows them to set a realistic selling price. Since Appraisals rely on the information provided by comparable properties, they offer a greater level of accuracy than market sales prices.
Homeowners who are refinancing their home and are looking to have it appraised may be best served by hiring a licensed Appraiser. Appraisals by licensed appraisers are generally more accurate than properties sold by real estate agents and brokers. Appraisals that are done by a realtor or a broker are not subject to the same requirements as Appraisals that are done by licensed Appraisers. Appraisals that are certified by the National Association of Certified Appraisers are also subject to more stringent standards than Appraisals that are certified by no particular organization.
Real estate appraisals provide a tremendous amount of information about a property. This information can be very valuable in making important decisions regarding the future purchase of a piece of property.