Buying a home is a costly affair. In real estate selling, even if you put all your savings into investing in a house, you will fall short. In such cases, you will have to knock on the doors of the bank. However, none of the banks will approve your home loan if you do not submit a property appraisal report.
A property appraisal is an assessment of the property based on certain parameters to find out if the value of the property is worth the investment. Based on the appraiser’s report, the bank will decide if you are qualified for the loan as well as on the amount of the loan. If the house does not meet the requirements, the bank will decline your loan request.
What are the appraising methods?
Most real estate agents opt for two methods of appraisal in real estate selling.
Sales comparison approach – In this, the appraiser will locate three other similar real estate properties that have been sold in the same geographical area in the recent times as the subject property. Since, no two properties are alike, the appraiser will determine the value by noting things that can compared between the four properties. Thereby, he will make an estimate of the value of your property.
Cost approach – In this, the property estate agent in Enoggera will determine the cost of the house based on estimated cost to reconstruct the house in case it is destroyed. This approach is mostly used in newly constructed buildings as the cost of construction is easily available.
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