Who Appraises Your Property In India And How?

Every home buyer, home owner, investor, real estate agent and builder needs a wake-up call. A home appraisal is just that. A real estate expert will be able to see many nuances of a property in India or a home, which a buyer can't see and the builder won't tell.

A certified real estate expert, who has the license to do so, will appraise your home or apartment and tell you the true value of your property. This third-party impartial opinion is very important before and after a home purchase. Many prudent home owners also get their properties regularly appraised irrespective of sale plans.

Insurance companies, banks, government agencies, tax authorities, courts seek out the latest appraisal reports during claims and for other purposes.

What does the appraisal report have?

A standard appraisal report has information that is gathered from various sources to include the following information:  

• Size of the house and its condition

• Details of structural problems like cracked foundation, chips in walls and the basement, weed growth etc

• Statement on the neighbourhood, its state of development and changes that affect the value of the property

• Trends in the real estate market and their impact on the property value

• Comparison with similar properties and their value

• The tools and methods used to prepare the appraisal report and how they arrived at the number

Why appraisal?

The value of a home or any property in India is not what the neighbour's home was sold at. There are many other things that make up the value of a property like the kind and quality of the structures and fittings. More importantly, it is a comment on the maintenance done for a home after years of usage that will speak for itself in the report. The advice of the appraiser will ensure that you get the extra push to care for a home in a way that its value is sustained.

What should you do during an appraisal?

• Provide annual tax bills

• Furnish the plan of the house  

• Give details of the work you did on the house like changing electricals and other plumbing work with the bills

• Get the latest update on pest control done and its report

• Make sure that a surveyor can reach all parts of the house like lofts and other unused areas

• Fix the house for leaking taps and clean it well so that cobwebs etc do not show

Appraisal before a home purchase

An appraisal is also very important before you buy a house. It need not necessarily be for a used property but also for a new home. A number of people get swayed by the look of a house and pay enormous amounts for it. A home appraisal will tell you the actual value of a property and makes sure that you do not give too much premium for your dream house. A fair appraisal report will also be a good bargaining chip with the seller or the real estate agent.

It helps investors too as they too might get distracted by the potential capital value of a property in the future. The appraisal report will give what it is currently the worth of the property and help calculate the returns expected.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)