You've probably heard the saying "it takes a village" before. While it's referring to raising a child, the same can be said of completing a real estate transaction. There are several people involved throughout the process, from the real estate agent to the underwriter to the title processor.
Another key figure who works behind the scenes is the appraiser. They conduct real estate appraisals, a process used to determine the value of a property.
With so many other boxes to check off before getting to the finish line, you might wonder if appraisals are necessary, whether you're buying or selling. Keep reading to learn more about real estate appraisals and why they're so important.
The Appraisal Process
An impartial appraiser conducts real estate appraisals to ensure fairness to all parties involved. They will do a thorough assessment of the property, including factors such as:
- size, age, and condition of the property
- location and comparable properties
- construction materials
- unique features
Once they've collected all this information, the appraiser determines the exact value of the property.
Why Are Real Estate Appraisals Necessary?
Appraisals are a crucial part of any real estate transaction. The appraised value of a property affects all parties involved in the process, including buyers, sellers, and even mortgage lenders.
Whether you're a seasoned real estate investor or you're buying a house in Noblesville, IN for the first time, you want to ensure you're making a smart investment. Appraisals help determine fair market value, so you'll know you're not overpaying for the property. They also give you insight into the property's condition, giving you a better sense of how much risk you're taking on.
On the flip side, real estate appraisals are important for sellers to figure out the correct property value. An accurate appraisal helps set a purchase price and lets sellers know if the offers they receive are fair.
Finally, lenders use appraisals as part of the financing process. This helps determine the amount of risk a mortgage provider is taking on. If the appraised value is less than the requested loan amount, this tells the lender it's not a good investment and the mortgage likely won't be approved.
How To Boost The Appraised Value
While appraisals are supposed to be objective and unbiased, there are a few ways to boost the value before having your real estate property appraised. These include:
- deep cleaning to remove any stains or odors
- pest extermination
- minor repairs, such as fixing leaky faucets
- boosting curb appeal with landscaping or other exterior upgrades
Not only will these small improvements add to your property's value, but they will also make it more appealing to potential buyers.
Get Professional Help for Your Real Estate Appraisal
No matter the type of transaction, real estate appraisals are an important part of the process. They ensure a fair price for both buyers and sellers and help reduce risk for lenders.
PMI Indianapolis offers a range of real estate services to both buyers and sellers. With over 20 years of experience, we have the expertise and local knowledge to help you navigate the complexities of the Noblesville, IN real estate market.
Curious about what your property might be worth? Get your free valuation today!
