Appraisals are the critical core around which a real estate deal revolves. Appraisals require a professional appraiser, who may be an individual or a firm. The question of whether to buy or sell the property and for how much are based around the appraisal. Decisions about the mortgage approval and amount of loan to be approved depend on the appraisal. But it is not just about purchase or sale of real estate.
Do you or does someone you know need legal information regarding real estate appraisals? Our real estate lawyers are here to help. Contact a real estate attorney in your area today for more information.
Appraisals can be done for a variety of reasons, as detailed below:
An appraisal will be done when buying or selling real estate. It is the only way to prevent fraud or overpricing when it comes to property transactions. If you are applying for a HUD loan, an appraisal is required. However, lenders may require a new and second appraisal if you are asking for a second mortgage or home equity loan, as property values in the area and the condition of the specific property in question may have changed in the interim.
Property values for the area can be found through an assessment, but an appraisal will still be needed for the property in question. Appraisals are also routinely done when the property is caught in a legal dispute or during probate when it is being transferred to inheritors as part of an estate or a will.
Do you have additional questions regarding real estate appraisals? Our real estate attorneys are here to assist you throughout the process and answer any questions you may have. Contact a real estate lawyer near you today.
Did you know?
There are two methods of doing appraisals.
One method is to use sales comparisons where the appraiser checks three or more recent sales in the area and compares these homes to the home being appraised. The second method is to figure out replacement costs if the home had to be rebuilt in the same spot from scratch.