Real Estate Appraisal in Madison
Real estate appraisal is a professional assessment of the fair market value of your property in Madison. An appraiser will take dozens of information sources, compare them, and place a value on your property. A correct property appraisal can be worth thousands of dollars on your home mortgage or commercial funding.
The appraiser’s main job is to tell the bank what the property you are looking at is really worth. The appraisal report will include information about the property, market trends, and more, that they use to estimate the value of the property. In the end, they produce a complete report that details their findings and provides conclusions that the bank or mortgage company will use to decide how much to lend on the property.
The report from Diorio Appraisal Services / The Real Estate Appraisal Business in Madison will generally include:
- An explanation of the methods used
- A detailed description of the property, including permanent improvements
- A statement about significant structural concerns, like leaky roofs or wet basements
- A note about area trends and developments, such as new subdivisions or highway entrances.
- A review of present market trends that affect the value of the property
- A market analysis that stacks your property up against other nearby properties that have sold
- Maps, photos and sketches
Why is a property appraisal so important for a home loan or commercial funding? Unlike many other types of investments, the value of a property is not appraised on a regular basis. If you want to invest in corporate stocks, gold, or the foreign exchange markets, those values are updated at least daily, sometimes by the second.
A property is generally only appraised when there is a need: someone wants to borrow money against the value of the property for a first mortgage or a second mortgage.
In much of the United States, including Madison, real estate appraisals can only be done by a licensed or certified real estate appraiser. Their certification ensures that they have a proper education in appraisal and that they able to do the job that is necessary in a professional manner.
A property appraisal is different from a property inspection. A property inspector will look at every detail of the property’s structure and make-up and provide a report of likely repairs that will need to be done over the course of a decade or so. For the most part a property appraisal is only concerned with those structural problems that significantly affect the value and salability of the house. In truth, when you take out a mortgage on a property, you are asking the bank to invest in it with you. The bank wants to make sure that they are investing in something that is worth the amount they are paying.
Most importantly, you should make sure that the appraisal that is done on your property in Madison is done by an experienced professional. This will ensure that you get the fairest and most honest valuation of your property and the best mortgage on the property you can. As a property buyer, the appraisal can be your assurance that the price you are paying is close to what the property is really worth. As a seller, a property appraisal will demonstrate that your asking price is fair and that you deserve the money you are asking for.