Banks need to find out the real value of the property you intend to buy at the stage of lending you the money. This is the phase where real estate appraisers are called in.
So what is real estate valuation expertise about?
The increase in the tendency of housing loans over time caused real estate valuation experts to step in. A valuation expert’s job is to evaluate the actual value of a house, a piece of land or commercial building. Most professionals in the field have a long track record of experience and often years or decades of field work in the subject related to the matter.
Different angles of the property have to be taken into consideration for an appraisal. Therefore, valuation is a delicate science supported by a number of mathematical and economic studies.
The expert starts his work by getting information about the neighborhood of the property. Afterwards, he evaluates the position of the property in comparison to similar properties in the neighborhood as well as the state of the property itself. The expert then produces a detailed report based on his examinations and evaluations and delivers it to the relevant unit of the bank which will release the loan.
Based on this report the bank determines the level of the credit or may decide to reject the application of the buyer.
The thorough execution of duty by the real estate appraiser is of paramount importance as an incorrect valuation will not only affect the buyer but the expert himself as well. If, as a result of an incorrect appraisal, the buyer declares an overvalued figure to the bank and has difficulty in paying back the loan later on, the bank could decide on disposal of the immovable through foreclosure. The expert will be held legally responsible in this case.