What is a Property valuation appraisal is one of the most popular questions asked by the company’s clients. It is necessary to make an assessment when making various transactions and operations with real estate – buying, selling, or when applying for a mortgage loan in a financial institution.
Apartment appraisal – what is it?
Valuation means determining the value of a property – an apartment, house, land or commerce. This procedure is regulated at the legislative level, so only accredited organizations and professional appraisers can carry it out.
Theoretically, you can evaluate the object yourself. However, for this you will need certain knowledge and experience. The most correct and simple solution is to use the comparative method. See how much similar apartments in your area cost and find the average.
Please note that self-assessment is not taken into account by government authorities. This is to the question of why an apartment appraisal is needed and what it affects. When applying for a mortgage, submitting documents to Rosreestr or the courts, only an official document will be taken into account!
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Why do you need a Property valuation appraisal?
Real estate appraisal is required quite often. The most common situations are:
- Registration of a mortgage loan;
- Purchase and sale of an apartment;
- housing exchange;
- Enterprise reorganization.
In the situation with mortgage lending, everything is quite simple. Valuation certificate is needed, first of all, by the bank. It is important for a financial institution to understand how much money can be given to a borrower. Do I need an appraisal of an apartment when refinancing a mortgage? Yes, but only if the refinancing procedure will take place in a third-party bank.
As for the sale and purchase, the seller needs to understand at what cost the apartment can be sold, and the buyer needs to make sure that the price is not artificially high and corresponds to the market.
If two people decide to exchange apartments with additional payment conditions, then an assessment is needed in order to adequately assess the cost of the objects and so that one of the parties does not remain in a big minus.
An appraisal of the apartment will also be required to resolve litigation. As an example, we can cite a situation where the heir must compensate other heirs who have not entered into their rights, their legal share. In this case, the assessment will help not to overpay and not infringe on anyone in the funds due to them.