Appraisal is a procedure used to determine the value of a piece of property. The appraisal is one of the key factors looked at when setting up a mortgage loan in Phoenix or anywhere, because a company would not want to lend more money on the property than what it is worth.
There are several factors that are looked at during the appraisal to place a value on a piece of property.
- Market Value – the cost of a piece of property to purchase fairly.
- Use Value – the amount of cash a property would be expected to produce.
- Investment Value – the amount the property would be worth as an investment to a consumer.
- Insurable Value – the extent of value an insurance company would extend.
- Liquidation Value – if the property was lost in bankruptcy or foreclosure what the bank could expect to get from the property.
After The Appraisal
If you are buying a home, you can use this home loan payment estimator to find out how much you can afford to pay based on your income and interest rate.
If you are selling your home, getting a good appraisal from a quality appraisal expert can mean the difference between sometimes thousands to tens of thousands of dollars worth of difference. The price your appraiser sets can make or break the sale of your home, so it is an extremely helpful to hire well trained, and senior appraisers.