3 Services Tips from Someone With Experience
Real estate appraisal refers to the opinion on the value of a real estate property by an appraiser. Because of the uniqueness of each real property, it is important to find a real estate appraiser to give you an opinion about the property’s worthiness before entering or signing in buy contract. It can be real frustrating for one to sign an agreement only for an appraiser to give a lower value of the property than the agreed upon value.
Unlike other properties that are traded frequently, transactions pertaining to real estate are infrequent and hence their prices vary a great deal. There are many factors that may affect the price of real estate property. Some of the factors are unique to each property while others are same across most properties. These factors include; location, neighborhood, market, condition, age among others.
To most people, the property’s location is the most important factor when buying real estate property. Location per se doesn’t mean the actual place where the property is situated but is determined by other micro-factors such as proximity to various amenities. You may find that real estate properties situated in places which have access to various amenities are appraised higher than those whose access to such amenities is not all that rampant. For example, properties situated in areas with access to local quality learning institutions may attract many buyers with school going children and this will increase demand for such properties consequently their market values may be higher. Properties located in places accessible to local employment opportunities are also rated higher in value.
The surrounding neighborhood also plays an integral role in determining the value of any real property. If the property is located in wealthy neighborhoods, then its value may be greater. Also the demand of estate property will determine its value. If there are many prospective buyers interested in any particular real property, then its value may be higher than the one with few prospective buyers. In property evaluation, there are various sorts of value and definitions that an appraiser looks at. These include; market value, value-in-use, investment value, liquidation value and insurable value.
Market value off real estate land is the cost at which such land can exchange at a competitive real estate market. In simple terms, market value is the estimated amount a liability or asset can be exchanged on a particular valuation date between a willing seller and willing buyer. Value-in-use is the actual amount of money a true property can generate for the proprietor for a specific use. Likewise, investment value is the worth of a property to a particular investor for a specific investment or use. Insurable value of a property refers to the amount of money of the property covered by an insurance policy and does not generally include site value.