An appraisal is a formal process that establishes the estimated fair market value of a condominium property. This is what your investment is objectively worth at that point in time. Appraisals are usually required by banks before they approve a mortgage. This is to make sure the loan amount isn’t beyond what the lender can expect to recoup if the buyer defaults on the mortgage.
Sale isn’t the only time you need an appraisal, though. Any time you need to prove the value of your home, you have the option of using an older appraisal or having it reassessed in the hopes of a more favorable valuation. This doesn’t have to mean a high value. If you feel your property taxes or insurance payments are too high for the area, you might contract for a new appraisal in order to bring those rates down to a reasonable level. A low value also keeps inheritance taxes down when settling the estate of a loved one.
The market responds to location, site amenities, room counts, styles and fees.
The appraiser needs to determine what the market response is (in the specific local market) to the subject unit’s specific style, amenities, location and development type. They need to define all the aspects of the subject’s development by carefully gathering the data for the subject development and reporting it to their client.
Our Expert appraisers fully research and accurately report the details of the subject property, including the number of development phases; the status of those phases, the total number of units, the number of parking spaces, the site size, and any restrictions regarding tenancy which are mandated by the city or municipality, among other variables.
Although our Expert appraisers are not responsible for ANY approval process, the appraiser does
bear responsibility for determining and reporting whether or not the current usage of the condominium unit defines the greatest return or the highest possible value — to the property owner. The data gathered by appraisers regarding the development as a whole should enable them to satisfy that professional responsibility.
The location of a condominium unit matters to the purchaser. The subject market may define a unit’s value by phase, floor level or position. Or, it may use some combination of all of those factors to define the value. It is the appraiser’s responsibility to identify and assess such market responses, and to communicate them to his or her client.
By partnering with the lender, the Expert appraisers at Hudson View can ensure that they present a reasonable and supported market value opinion to their client which takes into account all areas of contributory
value, thus which will allow a lending institution to make a loan with confidence.
If you would like to learn more, please visit the FAQs section, or contact us today to Get Started. Or visit us on LinkedIn. Use our services for managing your appraisal needs in the New York & Connecticut areas.
Hudson View Appraisal Services has many years of experience in the business, we have a proven track record of reducing lenders aggravations, efforts, and costs in managing the appraisal process.