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The following article provides information on appraisals and electronic home valuations. While this is obviously a useful topic if you have a home to sell, the article offers information that is worthwhile to learn about even if you are not currently a home owner. One of the most common reasons for purchasing a home is in order to benefit from the potential appreciation in value that owning a home has have historically produced. Using an electronic home valuation after you have been in your new home for a few years is a good way to obtain an indication of how much your home has appreciated in value and the impact on your net worth.
I, the Foreclosure Empress, have embraced technology while remaining true to my experience in the industry. One new tool that has changed the way I approach real estate is the Home Valuation. Now I use both the conventional appraisal and the home valuation for all of my real estate transactions. Let me explain a little about both and their applications in the real estate process.
An appraisal is a professional opinion, of market value based upon an interpretation of facts and judgments and their processing into an estimate of value, as of a stated date. An appraisal is required by most lending institutions when a property is sold with financing. This opinion should be unbiased and based on current market indicators.
In the event that an appraisal comes in lower than the sales price, buyers, sellers and realtors are affected. You may dispute the report; however getting an appraiser to change it is very difficult. Unless you can find better comparable sales, the value will stay the same. Remember, an appraisal is based on historical data comprised of "closed sales", not the currently priced homes for sale in the neighborhood. Most appraisers are required to utilize comparables that have sold within the last six months.
In choosing an appraiser, make sure he or she is a person qualified by education, training, and experience. In many states they are required to have a real estate license and also go through a certification process.
An appraisal is an extremely helpful tool to use in making an informed decision when buying a home. As a buyer, you should take comfort in the knowledge that the lending institution will only lend based on the appraised value, preventing you from overpaying. This is an excellent safeguard in the purchasing process. When writing an offer, be sure that your contract is always contingent on the property appraising for the agreed upon sales price and no less.
Part of your negotiating strategy should be based upon maximum appraised value may. Your obviously not going to pay more for a property than what its worth. Especially when dealing with a For Sale By Owner who usually has no idea what Market value is. The appraisal may also be used as a bargaining tool with the buyer. If the appraiser feels it's worth it, so should you. Better plan ahead too. An appraisal can take from four to ten days to complete. Since they must view every property, it is necessary to prioritize on a first come first serve basis.
Keep in mind, before you spend the money for an appraisal, an effective tool to use when bargaining or before presenting your offer is an Electronic Home Valuation. Unless you're a professional appraiser it would be very difficult for you to establish a reasonable value.
The Internet is a great source for Electronic Home Valuations. At the touch of keystroke you will receive a comprehensive report within a few seconds. This is a wonderful report to generate before you make an offer on any property. As a buyer or seller, a Home Valuation will give you the confidence of knowing what a reasonable offer should be.
Some of the things to look for in an Electronic Home Valuation are:
Electronic Home Valuations are an inexpensive investment to utilize when placing your home for sale or considering listing it with a real estate agent.
The internet has a few home evaluation websites. My favorite source, that I find to be the most accurate and up-to-date, is electronicappraiser.com. Their free sample report is the most comprehensive and yet easy to read on the Internet today.
Typically the appraised value of your home should be reasonably close to the value given in the Electronic Home Valuation. The certified appraisal will have pictures of the property as well as the comparables in the neighborhood. If you are thinking about selling, refinancing, or buying a home, the Electronic Home Valuation will give you a quick value range when compared to a certified appraisal. This will now give you the opportunity to make an intelligent decision based on credible information, rather than speculation.
In my time as the Foreclosure Empress, I have seen many changes in the real estate industry. There was a time when I was skeptical about Electronic Home Valuations however; technology within the real estate industry has become so refined that this type of reporting has become acceptable to lending institutions and individual home investors as well.
Although technology may never replace human intervention completely, utilizing Electronic Home Valuations in your real estate purchases will make you a smarter homebuyer, seller and investor!
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