When taking out a loan for buying a house, the lender you approached will be more than interested to know the actual market value of the home you’re interested in buying. They have to be sure of course that in the unfortunate event that you fail to pay back your loan, they can sell the house to get back what they’ve spent in your loan. Usually, rate of housing (also known as ‘takst Bolig’ in the Danish language) price changes from time-to-time.
Thus, you have to be conscious of the appraisal process. There are two things you need to look in; appraisers and appraisals. Appraisers are people licensed by the country. Before they are licensed, they need to undergo coursework and internship to be certain they become familiar with the housing market.
Also, while hiring any of the professionals, you need to fill a declaration form (also known as ‘egenerklæringsskjema’ in the Norwegian language).
As soon as you have reached out to the creditor, they could opt to send an appraiser from their own staff. If you are given the chance to seek out the support of an appraiser out of their company, the outcome could be subjected to inspection . This is very likely to occur if you brought in an appraiser which the lending organization is not familiar with.
Keep in mind that the appraiser should be an objective third party. This means that that individual should have no financial or other relationship with any party involved in the transaction. Any relation with either of the party could produce the effect of the appraisal questionable.
Also, when it comes to appraisals, you have to be prepared for the costs. This is because you would be required to cover the services of the appraiser. Thus, in setting your budget to your home buying process, make certain that you earmark a percentage for appraisal.
After the property has been analyzed, you will be given a very detailed report that would contain the reasons why the subject property is priced as it is. Some of the important things that it must comprise include a side by side comparison with three properties that are similar. It should also contain an evaluation of real estate market in the region where the subject property is located.
The detailed report must also contain the things that brought down the cost of the property. It could be a crumbling foundation or easy problems like old plumbing and electrical systems. It would also have a quote average sale time for the house.
By learning about the appraisal process, you’d be better prepared before you go into the house buying process.