Business by SN Staff December 1, 2020
Greetings, dear readers. When entering into an inheritance, as well as when obtaining a mortgage loan, if the object is a land plot or a land plot and a private house on it, it is necessary to assess the object. On your own, you can estimate only offhand; such an estimate will not be considered valid for the purposes indicated above. How to do everything correctly, what documents are needed, and how long the assessment is carried out – read on.
A home appraisal is a process that is required to establish the value of a property. Most often, the parties determine the market price.
The owner of the real estate announces the amount, the buyer either agrees with it or informs about the unacceptability of the conditions. As a result of negotiations, the parties disagree, or an agreement is concluded.
But there are situations when the appraisal of real estate must be done without fail. In this case, the value of the house is established officially. This is necessary in the following cases:
In addition, object evaluation may be required in other situations.
The following factors influence the valuation price of a land plot:
All these points have an impact on the final cost of a specialist’s services, but it should be taken into account that each appraiser calculates the cost of his services on an individual basis.
In order to find an appraiser with the most favorable conditions, the client needs to study all the offers that exist in the city. Building owners can choose any expert based on the cost of services. The reputation of a specialist is important.
But in reality, financial institutions recommend that mortgage clients work with carefully selected experts. The specialists are checked by banks, so you can be sure that the property valuation will be carried out objectively.
This can be done on specialized sites using an online calculator.
In this case, the material from which the building was erected, the number of stories, and other parameters will be taken into account.
The legislation stipulates that independent experts can determine the value of the real estate. These are persons who have a license confirming their right to engage in this type of activity.
In order to carry out a real estate appraisal, you need to inform a specialist about it. It is important to find out the terms of cooperation with him. Even before signing the contract, it is necessary to discuss the period in which the order will be executed, as well as the cost of the procedure.
It is necessary to clarify in advance what documents the appraiser will need to carry out the work. The package of papers that needs to be handed over to a specialist usually contains the following documents:
A number of points should be specified in the contract. These include the type of assessment, the purpose of the procedure. It is important to reflect on the tasks that will be solved in the assessment process. The document must indicate the deadline for the work.
The analog is based on a comparison of the prices of transactions that have been concluded in the market over the past year. Based on the results obtained, the cost of the object is determined, which is examined by the appraiser. The analog method can be used when assessing houses that are located within the city.
In order for the assessment to be objective, it is necessary to use the data of at least three transactions completed earlier. The specialist takes into account the similarity of houses in terms of area, the availability of communications, and a number of other factors.
The income method is used to determine the value of commercial real estate and apartments. The cost method is used to assess the value of a house. It is based on the determination of all costs for the construction of an object. The method is great for evaluating new homes that have been built in cottage communities.
“When evaluating private houses, experts most often use an integrated method. It combines the above approaches, taking the best from each.”
When the contract is signed, the property owner must hand over a package of documents to the specialist. Specify the date when the appraiser will arrive at the property.
Arriving at the site, he must determine the main characteristics of the structure. The appraiser must take a photo. They are needed in order to perform home identification. The specialist must check whether there were illegal redevelopments.
Determining the price of land valuation is complicated by the fact that the expert must take into account the market value of the land. In this case, he applies an integrated method; this will determine the real value of the property.
If the property is transferred to the owner after the acceptance of the inheritance, or the property was donated, then the expert applies the normative monetary value to calculate its value.
The assessment of a residential building is carried out by a specialist who is a member of the SRO. Its activities must be insured.
Real estate appraisal becomes necessary in any transaction with the property. Thanks to the independent approach of a professional, the real cost of the object is calculated. To avoid financial losses and overpayments, it is better to make a responsible decision with the help of an expert.
Many procedures will be invalid without expert judgment. Such procedures with real estate as the exchange, purchase, sale, donation require the participation and assistance of professionals.
Also, a qualified appraiser will help to re-register property rights if the previous owner died or the property was divided in a divorce. An expert assessment of an apartment in the capital will be required when taking out a loan secured by real estate, registering a mortgage.
The procedure for determining the actual value of an object (house, apartment, office, industrial premises) is the real estate appraisal.
Three approaches are usually used in property valuation
An independent real estate appraisal is carried out with a specific purpose:
Legal entities or organizations that are licensed to perform appraisal works can carry out a monetary appraisal of land in Manchester. Individual entrepreneurs, legal entities will help in establishing an expert monetary value.
Expert assessment is a document that contains an information base about an object. Here you can see the rights of the owners, the purpose of the assessment, the date, methods, explanations. The cost of services for the assessment of a property is formed individually, as it depends on the availability of various documents, deadlines, and scope of work.
The price of the services of a specialist appraiser has nothing to do with the cost of the object: not directly. Not in percentage terms. BTI identifies the estimated value during the inventory of the object. As a result, the necessary information is extracted from the registry.
If you carefully study the majority of information portals and the media, you will notice that quite a lot has been written about mortgage loans themselves. Those wishing to take a mortgage to know what package of documents is needed and the amount of required monthly income. Only a few people pay attention to such an important detail as real estate appraisal for a mortgage.
A real estate appraisal is carried out before the bank issues a loan to the borrower and is one of the things you need to get a mortgage. Most often, this procedure is carried out by appraisal firms or by private specialists, who subsequently issued a document with the total cost of the object, which will later become a pledge. In the course of such a procedure, the specifics and peculiarities of the purpose are taken into account, for which the housing assessment itself is made.
The specificity, in this case, lies in the fact that the creditor bank considers the acquired housing as the property that can be sold in case of non-payment of the debt by the borrower. Thus, the bank will be able to recover the money issued in accordance with the loan agreement. Based on the document, which indicates the assessment of the real estate for the mortgage, the lender determines whether this amount is enough to issue the requested loan.
In order to carry out the assessment, it is required to provide the company representative who will conduct it, the following documents:
All submitted documents must be certified by the signature of the person who ordered the assessment.
Before contacting a company that provides such services, the candidacy of a specialist should be agreed with the lending bank.
Some of the banks prefer that you carry out this procedure, resorting to the services of an appraiser accredited by them, but recently many banks have refused accreditation.
Usually, the procedure for preparing documents for the bank itself takes from one to three days.
The procedure itself is not a difficult moment. After the bank approves the appraiser’s candidacy, you need to agree with the appraiser and, accordingly, conclude an agreement with him for the assessment of housing.
Further, the day and time at which this specialist must arrive at the place where the object of assessment is located are assigned. During the inspection of real estate, the expert must photograph all the living quarters, as well as those adjacent to them.
At the end of the inspection, the expert will need several days to track the level of such proposals, as well as review the existing base of assessments. With the correct assessment of an apartment, a specialist must also take into account such a moment as a plan for building an area. And only after that, draw up a final report.
Typically, the final report is at least 28-30 pages. Attached are the appraiser’s documents required by the bank, documents for the property itself, and photographs taken during the inspection.
In the case of an appraisal for a mortgage, the report must show two prices: the first is the market value of the mortgaged property, and the second is the liquid price. As a rule, the bank is interested in the second price due to the fact that it is for this amount that the bank will be able to sell the property if the borrower cannot repay the debt.
There are times when the cost of housing, provided in the real estate appraisal report, turns out to be lower than the value in the real estate market or the price agreed with the seller. In this scenario, the bank will determine the loan amount based on the cost indicated in the corresponding report, and you risk receiving not the entire amount that you expected.
This can happen if the appraiser did not take into account the state of the mortgage object or did not correctly select similar types of real estate. The only way out in this situation is to try to convince the appraisal company to make a more careful report, giving them their reasons. Or use the services of another more competent company or an appraiser, and best of all, already proven in practice by your friends.