Obtaining a Professional Appraisal on your Kauai Home
When you begin the process of buying a home on Kauai and apply for a home mortgage loan, one of the first steps in the process is getting an appraisal of the property you wish to buy. This appraisal needs to come from a certified licensed appraiser.
A certified appraiser provides an objective opinion about the property’s value and works independently of any others who have an interest in the property including the Realtors, buyer, and seller. A certified licensed appraiser is bound by a code of ethics to disclose if they have any interest in the property being appraised.
A professional home appraisal takes into account numerous factors to determine an estimated value for the home. The appraisal may then be used by the buyer as well as the seller to confirm that the contract price is at the fair market value.
If the home is being used as the mortgage loan collateral, then the home mortgage lender will require the appraisal and take it into account when determining the applicant’s loan eligibility.
Factors considered when determining a property’s appraised value include the size of the property, size of the home, age of the home, overall condition of the home, and the location of the home including prices of other similar, or comparable properties.
The appraiser also considers economic factors affecting home prices such as the area’s rate of unemployment, and the current interest rates being offered by banks and mortgage lenders.
While the appraiser may utilize a number of sources as they gather information for their appraisal report, the first step is typically a complete physical inspection of the property on both the interior and exterior.
An appraisal report will typically provide an explanation of the the methods used by the appraiser in determining the property’s value. Also included are descriptions of the property and any improvements as well as any concerns (e.g., structural problems, etc.).
Notes may also be included about the surrounding area, market trends, and comparisons to other Kauai properties recently sold or for sale (comparables, or comps). Maps and photographs will also be included.
Once you have received a report from a licensed appraiser you will be able to proceed in the home buying process and obtain your Kauai home mortgage loan.
For more information about buying a home on Kauai please feel free to give us a call. The Bali Hai Realty staff will be happy to help you find the perfect Kauai home and answer your questions about the Kauai home buying process.