Real estate appraisals, real estate valuation or real estate appraisal is the method of determining a market value for the property to be sold or bought. Many real estate transactions involve appraisals as they happen infrequently and each property is unique, unlike stock, which are virtually identical and usually trade infrequently. Because appraisals are used in such few transactions, the field of real estate appraisal is quite small. In addition, because it is a subjective practice, there is not a standard procedure for preparing an appraisal. This is one reason that it is best to use the services of a qualified professional.
It is a mistake to attempt to prepare your own real estate property value estimations. The process involves many factors, many of which you probably do not understand. There are many professional real estate appraisers who are prepared to give you an objective assessment of comparable properties that have sold in your local area.
It is easy to calculate the value of your home. Most of us have access to accurate land survey maps that list current property values for all homes in your neighborhood. These maps make it easy to calculate the value of your home by taking a look at the map and comparing the square footage, price per square foot and other factors to similar homes. Other factors that make property values increase over time include location, condition and appeal, recent sales and amenities, and more.
A residential real estate property value estimator will also take into account such things as current interest rates, tax assessor’s appraisals, recent home renovations and upgrades, condition, and more. When preparing your value estimates, make sure you obtain the appraised value in written form and that it is complete and accurate. If there is an error, it will impact the final valuation. It is important to get several appraisals so that your estimations are based on an accurate comparison. The more appraisals you receive, the better chance you have of getting a good deal on your home.
You may be wondering why it is so important to get a real estate property valuation for selling price determination. Your selling price will determine if you receive a higher offer, and if you accept an offer, it is likely that you will get a better asking price. If you don’t want to be pressured into selling your investment property, you must get a property valuation performed. While a qualified and experienced real estate agent can help you with this, it is not something you should do alone. A qualified and experienced realtor can present an accurate analysis that can help you make the right decision regarding your investment property’s selling price.
When a seller obtains a free and total property evaluation for their house, they can then obtain the sales commission and compare that to the value provided by a real estate agent. In order to determine property values, sellers often rely on the sales commission obtained from the tax assessor and use this value to set their asking price for their house. Unfortunately, this is rarely an accurate representation of the true market value. Even when the agent offers to give the seller a list of comparable homes sold in the area, they rarely provide a complete and accurate list. Most importantly, most agents don’t offer a comparative real estate listing to their clients. It is difficult to obtain a list that is truly apples to apples, meaning that you cannot establish a comparative value that is as precise as the tax assessor’s numbers.
Many buyers go through real estate brokers to obtain their property appraised. However, these lending institutions typically only offer a limited range of real estate appraisals to their clients. In order to obtain a real estate appraisal that is really representative of the prevailing market value of homes in the neighborhood, buyers will need to contact lending institutions on their own. Most lenders are comfortable providing a free appraisal to a buyer, but because of the limitation of the amount of information they are able to provide, it may not be the most accurate appraisal. For this reason, many buyers will use a non-profit real estate appraiser or a local real estate broker to obtain a free appraisal of their home.
The next issue to address is how to determine property values in areas with little growth. Areas where development has occurred typically increase in property values. Areas where development has occurred recently, however, may decrease in property values. This is because new construction often comes with higher prices. However, the problem with this is that some new homes aren’t actually worth as much as previously thought. Therefore, real estate property investors must research the available data in order to determine market value, not just price paid by lenders.