Help & Resources: How a home appraisal works?
How a home appraisal works? What is the difference between a home appraisal and home inspection?
A home appraisal may not be your priority when you’re looking to buy (or sell) a property. But maybe it should be: A professional appraisal determines for the property seller and the buyer how much a residential property is worth.
The purpose is to protect the buyer from paying an over estimated price for the property. Typically, a home appraisal isn’t the most critical part of buying or selling a property, but it’s a fundamental step. Here’s more about the home appraisal process in Chania, Crete, Greece.
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Request an appraisal for your property in Crete and gest the pragmatic value and insight about your real estate asset. Read our simple to use Chania Property Buyer Help and Resources Guide, which will take you step by step through the process of purchasing a residential or commercial property.
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First things first, what is a home appraisal?
The Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisal Standards Board of The Appraisal Foundation specifies the procedures and recommended practices to be followed in developing and establishing an accurate appraisal and the ethical rules associated with the processes.
As defined in USPAP, an appraisal is the act or process of developing an opinion of value. To make it as simple as possible – a home appraisal is a self-determining and independent estimate of the value of a residential property (which isn’t always the same as the listing price). The appraiser will collect all of their findings into a report and produce the home’s appraised value.
Property Appraisal Valuation Procedure
The valuation procedure is a systematic process the appraiser follows to answer a client’s request about the value of a property. The magnitude of this important source of information generates an indispensable requirement for well – informed and reliable appraisals to support decision making including, real estate disposition, value estimation, marketability, and the rights inherent in ownership.
However, the property appraisal process faces a number of challenges and competing priorities:
- The level of compliance for all real estate assets is increasing with new bodies, standards and regimes
- How to effectively manage risk and costs without impacting returns
- How to seize (seize upon) new opportunities in domestic or international markets
- How to harness innovation and respond to the recession of the market
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Read or download ARENCORES Home Appraisal Guide (2020 Updated)
Home Appraisal Vs. Home Inspection
While both occur before you purchase a property, there are a few significant differences between a home appraisal and a home inspection because they serve different purposes.
The home appraisal which is a recommended but not a mandatory step – is an assessment of home value. The appraiser holistically evaluates the property’s condition as part of the investigation of how much the property is worth, as well as other factors, such as the local real estate market trends, recently sold homes in the area, economic climate etc.
The appraiser doesn’t make recommendations for repairs or renovation works. This is the work of a home inspector.
A home inspection is for assessing property’s condition. The inspector investigates the functional parts of the house, using special equipment and tools to discover problems –if any- that may not be seen by the naked eye. The inspector search for problems in the mechanical, plumbing and electrical infrastructure including the structural condition of the property including the walls, ceilings, floors, windows, doors, roofs, solar panels, pergolas and appliances. After looking at everything the inspector provides a detailed report of the findings, including repair recommendations.
Find a professional real estate team in Chania, Crete
Though your search for homes in Chania or Rethymnon may start online, it shouldn’t end there. You can do a lot of research on your own, but you need the help of a real estate professional when it comes to actually finding and securing your perfect home in Chania, Crete.
ARENCORES can help you figure out how much house you can afford and what kind of homes you can expect to find, considering the price range, property availability and market trends. You can also search for off-market properties and discover great real estate deals in Chania and Rethymnon before anyone else.
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