Understanding Long Beach Island Property Appraisal
Long Beach Island Real Estate
Appraisals are required for and are an important step in any Long Beach Island real estate purchase requiring a mortgage. Essentially, an appraisal is the opinion of value by a licensed and trained professional. This professional has been hired to evaluate the value of a home for the benefit of the bank. This is done to ensure that the asset which the bank is going to collateralize, mainly the structure, has sufficient value to justify the loan. Understanding Long Beach Island property appraisal is in essential step to buying any home in the LBI real estate market.
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Understanding Long Beach Island Property Appraisal
Understanding Long Beach Island property appraisals can help a buyer make a smart choice when investing in the LBI real estate market. Basically, an appraiser follows these steps:
- The appraiser will visit the subject property in person
- The appraiser will evaluate the subject property in relation to other recent sales
- Adjustments will be made for the differences between the homes to determine the true market value of the subject property
When an appraiser visits a home in person he or she will take measurements of the rooms and structure, draw a floor plan, take photos, And note specific characteristics such as a view and distance to the beach. The difficulty in such an a valuation is that an appraiser must then evaluate the subject home relative to other recent sales. Unless the appraiser has specifically visited these homes in person, he or she must make determinations based on the limited information available online. As we all know, sometimes photos can make a home appear better or worse in the LBI real estate market than it actually is. This can create a challenge for an appraiser attempting to come up with the proper evaluation. The more diligent appraisers will usually call the listing agent who sold the house to ask specific questions. Once the comparisons have been made, the appraiser will adjust for differences between the homes to determine the true market value of the subject property.
Buying a Home in the Long Beach Island New Jersey Real Estate Market
In most cases, property appraisals work out just fine in the LBI real estate market. It is surprisingly uncommon to have a low appraisal valuation. Much of this has to do with the overall strength of the LBI real estate market and the high value of land. Even older homes with an inhabitable structure can still trade for several hundred thousand dollars or more thanks to the high market value and potential of the land as a building site. When dealing with the property appraisal it is important to understand the process so if an issue does arise, you can be properly prepared to contest the findings if need be. For more information about understanding Long Beach Island property appraisals please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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