The Importance of Real Estate Appraisal

15 Jan

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 frustrating to enter into a buy contract and pay some deposit on some deposit on for a real estate appraiser to tell you that the value of the property is less than what you had agreed to offer on the property and this can cause the bank to decline granting you a mortgage.

Contrary to other properties which are traded frequently, real estate transactions are less frequent hence there is a greater need to carry an evaluation of the property before making any transactions so as to reflect its market value. There are numerous factors that might impact the price of real estate property. Some of these factors are unique to each property while others are uniform across all real estate properties. These variables include; location, surrounding properties, demand, condition, age of the property, 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. Properties located in places which have access to various social amenities are appraised higher than those situated far away from such amenities. 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. Likewise places with closeness to local employment opportunities may be valued highly.

The surrounding neighborhood also plays a key 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. Whether there are lots of prospective buyers with interest in a particular real estate, then its value might be greater compared to one with few potential buyers. In Moraga residential appraisal, there are various sorts of value that an appraiser appears at. These include; value in use, market value, 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. Basically, market value is the estimated amount of money a liability or asset could be traded at a particular valuation date between willing seller and willing buyer. Value-in-use is the actual amount of money a true property from can generate for the proprietor for a specific use. On the other hand, investment value is the value of a property to a particular investor for a particular investment. Insurable value of a property is its value which is covered by an insurance policy and does not generally consist of site worth.

* The email will not be published on the website.
This site was built using