One of the most important investments you'll make is investing in real estate. Whether purchasing a starter home or buying a property to collect passive income, you're likely steadfast on ensuring a good deal is completed. While we have plenty of books and age-old advice to go around, we are also fortunate to have policies that are observed by all legal parties in place too.
Enter the appraisal process.
No matter if you're buying or selling a home, the appraisal process is an inspection that you'll become intimately familiar with during the home buying process. For a buyer, the outcome of an appraisal will ultimately determine the mortgage with the lender. For sellers, the appraisal ensures you're getting a good deal on your home.
What is an appraiser?
An appraiser plays a crucial role in the home buying process. As you might expect, the appraiser is the expert who determines the market value of an asset. Independent of the buyer or seller, they are responsible for determining what your house is worth. (No pressure.)
Don't worry; not just anyone can become an appraiser. They are appointed by authorities in their local jurisdiction and are respected by those in banking, finance, and real estate. After all, they must be trusted to wade through important pieces of a home, including size, design, and structure, to arrive at a healthy asset estimation.
How to find a good appraiser
- Look for someone who specializes in your type of home. Similar to not why you're not going to eat steak at a seafood restaurant, you want to work with an appraiser who understands your style of home. If you're selling a single-family home, do not work with someone who specializes in townhomes.
- Ask for recommendations and referrals. Selling and buying a home is a great investment, and there is nothing wrong with asking for a recommendation or a referral. You should have options and feel 100% comfortable with your choice.
- Find someone familiar with local legislation. Rules and regulations will vary state-to-state, even county-to-county, so be sure that the person who is evaluating your home is up-to-date with all policies, zoning codes, and laws in your area.
- Shop around. You don't have to go with the first recommendation that comes your way. After asking for multiple recommendations and referrals, shop around and make sure you find the best fit for you.
- Do a background check. Do your homework, and confirm an appraiser's license and certificate.
Home buying and selling can be an emotional process, and it takes many team members to get a deal to the finish line. It's important to invest your time and energy toward finding a good appraiser, even when you're excited and want to get to the next phase.