Mission Bend Texas Real Estate Appraisals

A new house has no depreciation so it will appraise higher than an identical existing home . Although land will not decrease in value – houses do. A house’s building materials and systems each have an effective lifespan that is reduced each day. As an example, most 30 year roofs generally need replacement after around twenty years. Conversely, an existing property house that is only four years old still has four years of depreciation throughout all materials and this must be factored into the appraisal report. Finally, builder properties usually permit for some customizations to the house which means the buyers get precisely what they desire when they move into without needing to carry out changes.

Because of the oversight and over regulation of home appraisers, maintaining compliance and information portals create a substantial degree of expenses. Appraisers are expected to earn over 2,000 hours of practice prior to being permitted to carry out appraisals themselves. Since each home, market and comp is unique, a house appraiser must invest a significant deal of time writing each appraisal. Home appraisers actually make much less per year than other careers that demand similar regulation and education level.

A bank’s loan-to-value (LTV) is calculated by the LESSOR of the sales price or the appraisal value. It would only affect the loan if the estimate of sales price came in below your sales amount because now your loan calculations would need to be re-worked. In the case of a higher appraisal report you know the house has some equity. You should also be aware as well that the home seller is not provided a copy of the appraisal report so they will not be aware that it came in higher than the sales price.