Why You Should Hire a Real Estate Appraiser Before Investing in Property
Investing in real estate, whether residential or commercial, can be a risky business. The market is unpredictable, and you stand to lose a great deal of capital should you lack insight and the necessary details to make an informed decision when you go to invest.
One way to ensure you make wise investment decisions is by ordering a real estate appraisal from a designated real estate appraiser. An accurate and reliable real estate appraisal is essential when seeking to invest in any property. Even a seasoned real estate investor should consider it prudent to hire a professional appraiser.
A real estate appraiser provides more than an estimate
A trained and skilled appraiser utilizes his or her knowledge, experience and standardized techniques to view, study and analyze a property to estimate its worth.
Employing a professional appraiser to evaluate a property’s worth assures that the appraisal value you receive is credible. The benefits of hiring an experienced and qualified appraiser extend beyond the scope of providing an estimate. The appraiser can also provide other unique functions that contribute to your decision-making process.
An appraisal protects your interests
If you are purchasing a property with cash upfront, having a real estate appraiser who is unconnected to anyone in the transaction to offer an impartial opinion is a good idea. Each member in the transaction serves his or her self-interest. Hiring an independent appraiser helps to ensure that your interests are protected.
If you require a mortgage for your purchase, most lenders will require an appraisal as part of the loan process.
An appraisal prevents you from paying more than a property is worth
A property’s worth ought not to be confused with market or selling price. Although there are instances when both values are equated, often, the market price is set above a property’s actual value. An appraiser can establish a property’s worth and provide a tool with which you can negotiate with a seller to avoid overpaying for the property being sold.
An appraisal can assist with identifying investment opportunities
Investing in property in an unfamiliar real estate market can place even a seasoned investor at a distinct disadvantage when it comes to opportunities. A real estate appraiser who is familiar with the local market can provide accurate valuations to even the odds.
An appraisal can help you assess a property’s profitability
A real estate appraiser, by way of a property valuation, can assist an investor in determining the profitability or rate of return on a piece of real estate prior to purchase. With a property valuation, you can make educated guesses about how an investment might perform in the future.
An appraisal promotes peace of mind
An appraiser is uniquely trained to conduct and produce property appraisals at industry standards. Selecting an appraiser who is experienced and adept at preparing appraisals provides you with the opportunity to divert your attention to other equally important issues related to an acquisition and enjoy peace of mind when it comes to the appraisal.
Who should you trust?
A real estate appraiser who is designated through the Appraisal Institute of Canada with a CRA or AACI designation is your best choice for securing a fair and accurate real estate appraisal. The Appraisal Institute of Canada has the most comprehensive requirements and its members are relied on by most lending institutions, governments and the Canadian Revenue Agency.
Are you planning to invest in real estate and require appraisal services in Vancouver?
If you are planning to invest in property and need a real estate appraiser in Vancouver or Kelowna, contact us at Adlaw Appraisals. Our experienced and expertly trained appraisers are known for consistently producing accurate and speedy appraisals. Let us help you make better-informed decisions.
Give us a call if you have questions about our residential or commercial real estate appraisals, or order an appraisal online today.