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Appraisal Process

Appraisal Process

 

Residential and commercial real estate markets in many areas of the United States increased exponentially in value from 1997 to 2007. After 2007, values in some areas of the country plummeted by up to 50%. Fortunately, in recent years real estate values have been on the rise.

Why is the appraisal process in both initial purchases and in refinance transactions so important (whether it is the Direct Sales Comparison Approach, the Cost Approach, or the Income Capitalization Approach)?

Why are credit reports and income and employment checks important too?

Can you see situations where appraisals, credit reports, and employment checks can derail refinance transactions?

Complete these questions in 300 words or more.


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