Understanding home appraisals
All about estimates
If you expect an exact appraisal figure of your property right off the bat, prepare to be disappointed.
Home appraisals are based on estimates that are themselves determined by other factors arcane to the industry.
But one factor that would be familiar to you is your home’s features, their current state, and how they compare with others in the area.
You can ask for a second opinion, but be prepared as well to get a second value on your property.
Some appraisers factor in certain things, while others leave them out of the equation.
Either way, having your home appraised gives you the much-needed set of baseline numbers with which to define a price territory for your home.
That same territory provides the financial elbow room to figure out how to best increase your property’s value.
Other uses of home appraisal
Whether you’re buying or selling, your home appraisal can be used to:
- Determine property taxes
- Negotiate leases
- Affect property insurance
- Secure loans
Just remember that getting a second opinion will result in a new set of values based on the factors the appraiser chooses to consider.
Let the lessons of appraising guide you accordingly.
Home appraisal vs. competitive market analyses
Competitive market analyses (CMAs) and appraisals are two different things.
- CMAs are prepared by real estate agents and used to estimate a home’s price range and how long it’ll take to sell.
- Appraisals are done by licensed professional real property appraisers. Their role is to give buyers and sellers unbiased and impartial information regarding the true value of a property based on facts, statistics, applicable laws, and other factors.
While both are useful to the homeowner, the logic of home appraisals is what the homeowner finds most useful first.
Need more information about home appraisals? Give Nordine Realtors a call now, 310-357-9732 or visit our Los Angeles office.