A good real estate agent can help walk you through the appraisal process. In New Zealand, the cost of a home appraisal with a licensed real estate agent is free of charge.
An appraisal is done by a licensed professional. While some homeowners do hire an appraiser at times other than when buying or selling a home, it’s typically only reserved for when a home goes on the market. However, there are times when the homeowner is looking to refinance the home to lower the mortgage or take out a loan against the equity – so then an appraisal has to be done.
A home price set by a homeowner doesn’t always accurately reflect the true value. The kind of shape that a house is in can make the asking price correct if it’s been well cared for. A house that’s in need of repairs doesn’t always match the asking price and an appraiser can determine this.
The real estate agent takes into consideration where the home is located, what upgrades have been done and the kind of neighborhood and values of the surrounding homes. Extensive research is carried out on recent sales in the area, which helps determine what the market is indicating the home is worth.
The appraiser knows the parameters for correctly determining your home’s values. He also knows what the laws are concerning the process. He’ll come out to your house with documentation that he’ll have to complete. He’ll be looking at how many bedrooms and bathrooms your home has. He’ll also measure the square footage of your home to make sure it’s accurately described. He’ll look at the outside of your home and check things like the exterior walls, the shape of the windows and the roof. He’ll look at porches and decks and see if there are any extras that add to the home’s value. Inside the home, he’ll check to make sure that everything’s in working order. He’ll run the taps, flush the toilets and check under cabinets for leaks. He’ll mark anything that needs to be fixed. He’ll check the appliances, the electricity, the heating and air unit. He’ll check the garage as well. He’ll provide photographs of your home to back up his analysis of the appraised value. Getting an appraisal done can help make sure that both parties in a sale are aware of any potential issues.
Sometimes homeowners are upset when the report comes back more unfavorably than they anticipated. But the appraiser can help protect you from selling a home with potential hazards just as much as it can protect you from underselling.