Appraisal is a report in which a certified real estate expert appraises your home and estimates its value in a professional, objective manner. Watch this quick video to know why appraisal is important, what appraisers consider while assessing your home before sale and more.
Appraisal is a report in which a certified real estate expert appraises your home and estimates its value, in a professional, objective manner. Appraisals are done because there is wide variance in the quality and specifications of homes. The purpose of an appraisal is to rightly assess the value of a home before a sale, or before a mortgage lender extends a home loan. Home appraisals are also done for refinancing existing mortgage loans and for various similar purposes. When a home appraisal is done before a sale, it is done to let a professional assess whether a home is rightly priced, considering the location, amenities, structural conditions, size of the home and the year in which it was purchased. Home appraisal is important because it ensures that you are paying a reasonable price. When an appraisal is done before extending a mortgage loan, the purpose is to ensure that the home buyer is not over borrowing. In home appraisal, the future prospects of development of an area and the recent trends in the real estate market will be taken into account too. While applying for a home loan in India, a credit appraisal is an important part of the process. In credit appraisal, the bank judges the feasibility of a home loan according to the credit worthiness of the borrower, the ratio of the amount of home loan to the cost of the home, and the ratio of the equated monthly installment (EMI) and income. The bank also looks into the loans you have previously taken.