Property Appraisal: What it is and How to Get It Done?
May 24, 2017 Home Trading Steps
Buying and selling a property is a crucial task. From documentation to financial deeds, everything needs to be sorted out properly for the deal to go smoothly. As a seller, after you have found the potential buyer of your property and the buyer is also willing to pay you the price you have quoted. The buyer then applies for the loan from any bank or housing finance institutes to help pay the price. Banks generally come to visit and inspect the property before approving the loan, it is known as property appraisal. It helps the banks in understanding what they are going to get if the buyer's defaults on his payments and the lender have to sell the property to recover the loan amount. This concerns the buyers too. To take the desired loan from the banks, the property must be in mint condition. The amount buyer is going to invest in the property shall be close to the amount quoted by the bank, if not same.
Not only the buyer but also property appraisal is important for the seller too. If the property that you want to sell and have quoted it around Rs 70 lakhs and the actual value of the property comes to be around Rs 50-55 lakhs then there are chances that the bank will withdraw from approving the loan. To explain this, the banks pay almost 80 percent of the loan amount and only the remaining 8 percent is paid by the buyer. If the buyer defaults on the loan repayments then the banks do not want it to be the victim of that. This is where the seller should make sure that the price they have quoted is not too high from the market price.
So how can a seller make sure that the property gets a good rating from the property inspector? A huge change in structure is not possible so why not do a little renovation and maybe paint the entire house to make a good impression on the property inspector and get a good rating for the property. Loose wiring and chipped paints dampen the spirit of the team. Get any leakages in kitchen and bathroom fixed.
Small changes in the property can definitely raise the appraisal ratings. A neat and clean house is definitely a good welcome sign. These tactics can help in raising the notch few levels.
Not only the buyer but also property appraisal is important for the seller too. If the property that you want to sell and have quoted it around Rs 70 lakhs and the actual value of the property comes to be around Rs 50-55 lakhs then there are chances that the bank will withdraw from approving the loan. To explain this, the banks pay almost 80 percent of the loan amount and only the remaining 8 percent is paid by the buyer. If the buyer defaults on the loan repayments then the banks do not want it to be the victim of that. This is where the seller should make sure that the price they have quoted is not too high from the market price.
So how can a seller make sure that the property gets a good rating from the property inspector? A huge change in structure is not possible so why not do a little renovation and maybe paint the entire house to make a good impression on the property inspector and get a good rating for the property. Loose wiring and chipped paints dampen the spirit of the team. Get any leakages in kitchen and bathroom fixed.
Small changes in the property can definitely raise the appraisal ratings. A neat and clean house is definitely a good welcome sign. These tactics can help in raising the notch few levels.
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