Archive for January 9th, 2010
What Exactly Is An Appraisal?
January 9th, 2010 | 
Author: The major log jam in today’s real estate market is valuation difficulties. Banks are having a hard time confirming the purchase amount meeting up with the actual value of any given home. This causes a bottle neck in the amount of money they can loan out due to processing times being extended. Just to make sure what they are loaning on is worth the amount they are loaning, banks hire appraisers.
In the appraisal the analysis of market data is used to compare properties with similar attributes to establish a price window. This is done so banks do not loan too much money on a property that they cannot get their initial loan amount back if they have to foreclose on it. Otherwise, if the property owner could not or would not pay the bank would be left holding the bag, as in a rapidly depreciating market.
Any can be trained to be an appraiser but there are many certifications for different kinds of appraisers. Most people are familiar with residential real estate, but there are certifications for land appraisers, commercial appraiser and even industrial appraiser as well.