Let’s say that you need a loan for some immediate need from a lender. Now the lender will obviously require collateral for the money being lent, and so the value of your house comes into question. This is where an appraisal takes place. Hence, a licensed appraiser (either an independent contractor one that is employed by the bank) is sent to evaluate the value of your home. This is to determine if the bank can get its money just in case, you default on your payments. Finally, there are several factor that can determine whether you get the loan or not, but if you do not, the appraisal will show you areas of improvement which can improve your chances of success the next time you apply for a loan.
Flipping is a method that reminds of the phrase ‘time is of the essence’ and largely depends on finding property that is priced low, and which can be sold at a higher price for a healthy profit. Three methods of flipping are commonly in practice such as:
Multi-investor flipping
In this method, one investor buys it at a low price, then sells it to another investor who sells it to a third party for a higher value.
Real Estate flipping
In this type, investors purchase a property for a low price, and then sell it for a higher price in a rapidly rising market.
Fix and flip
Real Estate in this type of flipping will help the investor get a good deal due to repair or renovation that is needed for the property. After he completes renovating the house, he can sell it in the market for a higher price.