Making a mortgage loan, buying or dealing a property valuation, as well as some other conduct bear a property valuation procedure. With its help, its value is determined, and it can be carried out by both legal realities and individualities.
Who to communicate for evaluation
In order to perform an independent appraisal of the value of the property, you must communicate an appraisal company. The customer needs to conclude an applicable contract with a company for carrying out appraisal conditioning, which will be handled by a specialist with the applicable authority. All conditioning of similar companies are regulated by applicable law.
When is a property appraisal needed?
There are several situations where a property appraisal may be needed. It’ll be demanded in the following cases
1. Mortgage processing. This is the most common case, as the valuation report is necessary for the bank to determine the maximum loan quantum. In this case, the bank takes into account the request value as well as the liquidation value;
2. To be presented in court as substantiation. In this case, the buyer can sue, proving that the real value of the object was designedly hidden from him, and the property was vended at a advanced cost;
3. In the event of the trade of an apartment, house or its exchange. Such an assessment may be necessary for both the dealer and the buyer;
4. In case of reorganization of a company, enterprise;
. To rent an apartment as collateral to a bank. In this case, a marketable association can find out how important it can take if the borrower doesn’t pay the loan. In this case, as with a mortgage, its lower value( liquidation) is taken into account.
Also, property valuation may be demanded in other situations, for illustration, when giving, will.
What does a reviewer determine?
The task of the reviewer is to determine the different types of real estate prices. It can be of several types
• request. This is the price of real estate, set on the free request. It’s this variant of the price that merchandisers and buyers seek to find out. The determination takes place by comparing prices on the request set for analogous parcels;
• Cadastral. This price is set after the state cadastral valuation;
• liquidation. This is the price at which the object can be vended as snappily as possible. As a rule, it’s lower than the request value and is only 75- 80 of it;
• Investment. This price may be different for each person, depending on his investment objects, but it’s always advanced than the request price. With its help, the estimated profit that can be attained from the property in the future, for illustration, when renting it out, is taken into account.