Now that the housing crisis seems to have finished, one can see with perspective what things were done wrong during the boom. One of them, undoubtedly, was the appraisal of housing, whose price was often inflated.
The real estate appraisal allows us to access a mortgage. It will also specify the amount of the loan that the bank gives us to buy the home. The appraisal is determined by a professional, who values the property. The appraiser will take into account some factors, both the home itself and the context of its location. It is the form that the bank has to ensure that the money lent is not more than the value of the real property.
What are the factors that influence real estate valuation?
The appraiser’s report reflects the value of the property by some factors. For example, the size of the house, its characteristics, or the age of the property, among others.
Location and facilities of the area are key to determine the price. The location is one of those factors and is key in the appraisal process. The facilities within the area also determine the price of the property. Accessibility to public transport, green and leisure areas, public services such as schools and health centers, shops are just some of the factors to look at.
Size is another factor important. However, the intelligent distribution between rooms of the square meters that make up the house. The appraisal report will also take into account the home’s equipment – such as heating or air conditioning. The quality of finishes and building will also play a role. In fact, contrary to what one might think, the quality of the construction is more important than the antiquity of the property.
Other factors to take into account in the appraisal will be the aesthetics. For example, the views, the orientation, the possibility of natural ventilation and environmental noise. After visiting the real estate and taking note of all these data, the appraiser will review the official records.