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Why do I need to conduct an assessment for the bank?
Real estate appraisal is carried out before the bank issues a loan to the borrower and is one of the things that is needed to get a mortgage. Most often, this procedure is carried out by appraisal firms, or private experts, who then issue a document with the total value of the object, which will later become a pledge. In the course of such a procedure, the specifics and specific features of the purpose are taken into account, for which the housing assessment itself is carried out. The specificity in this case lies in the fact that the lending bank considers the purchased housing as property that may be sold in case of non-payment of the debt by the borrower.
How is the assessment of an apartment for a mortgage?
The procedure itself is not a difficult moment. After the approval of the candidacy of the appraiser by the bank, you need to agree with the appraiser and accordingly conclude an agreement with him to make a housing assessment. Next, the day and time are assigned, in which this specialist should arrive at the place where the object of evaluation is located. In the process of exploring the property, the expert should take a picture of all the residential premises, as well as adjacent to them. To assess housing for a mortgage specialist is required to consider all the factors that can affect it, for example:
Condition and age of the building;
Availability of public transport;
Availability of pharmacies, schools, hospitals and other infrastructures.
At the end of the inspection, the expert will need several days to track the level of such offers, as well as to view the existing rating base. With proper assessment of the apartment, the specialist should also take into account such a moment as the plan for the development of the area. And only after that make a final report.
What should be in the report for the bank?
Usually the final report is at least 28-30 pages. Attached are appraiser documents required by the bank, documents on the property itself and photographs taken during the inspection process. In the case of an assessment for a mortgage, the report must indicate two prices: the first is the market value of the mortgage real estate, the second is the liquid price. As a rule, the bank is interested in the second price, due to the fact that it is for this amount that the bank will be able to sell the property if the borrower cannot repay the debt.
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Why is real estate valuation carried out?
The evaluation procedure is carried out for the following purposes:
In preparation for the sale, lease or purchase of a property;
To present this information in public services (for example, in the fiscal service);
To determine the actual value in the process of drawing up a pledge agreement, loan processing;
When making an assessment of the damage caused in case of an insured event ( for example, a fire or a natural disaster) – the data are provided to the insurance company as an alternative proof of the value of the damage caused;
Upon receipt of inheritance, donation;
To assess the investment attractiveness of the object (in the preparation of a report for the investor or potential buyer).
All legal processes of registration of transactions and other documentation relating to a particular object must take into account the actual value of the property. This amount must be officially confirmed by an independent appraiser.
Specificity of the expert evaluation
Property valuation in Tier, as in any other Russian city, has its own specifics. There are several main criteria for analysis:
- Market price;
- Investment value;
- Cadastral price;
- The liquid value.