 |
Why Do you Need a Real Estate Appraisal?
Author: John Harris  | Posted: 05-11-2006 | Comments: 0 | Views: 188 | Rating: (50)  (?) 
Anytime you buy or sell real estate, you need a real estate appraisal. The primary purpose is to find out exactly how much your property is worth. Banks and similar lending companies also require it, before a buyer can obtain a mortgage.
A real estate appraisal develops an "educated and trained opinion" on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.
An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property.
A real estate appraisal is based on the highest and best use of real property what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable.
The real estate appraisal includes a definition of the type of value that is being developed whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on.
The Process
The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property. For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser.
Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on.
The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal.
If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.
Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market.
Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions.
Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000. Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount.
For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/real-estate-articles/why-do-you-need-a-real-estate-appraisal-70163.html
About the Author:John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Escondido Homes for Sale
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Increase the Value of California Homes for Sale by Preparing in Advance
By: John Harris | 09/08/2006 | Real Estate
Increasing the value of homes for sale can increase the asking price. Though realtors suggest improvements that can be made to increase home values, there are many things that can be done by owners in advance of listing their California homes for sale.
Real Estate Tax Breaks for your Home
By: John Harris | 30/11/2006 | Real Estate
It is always beneficial during tax season to own real estate, which gives you many annual deductions. If you purchased residential real estate during this year, however, you can look forward to even more generous savings at tax time.
The Real Estate Market May Soon Take an Upturn With Homes for Sale Inventories Back to Normal Levels by Midyear
By: John Harris | 15/03/2007 | Real Estate
According to the February 19, 2007, issue of BusinessWeek, the homes for sale market has not crashed and is forecasting normal inventory levels for homes for sale by midyear.
Good News for Owners — Sale of New Homes Down, But Existing Home Sales in Good Shape
By: John Harris | 09/08/2006 | Real Estate
Over the past months, we have all been inundated with projections on the housing market bubble — Will it burst? It is going to burst soon, be prepared! Sell Now! Buy Now! And the forecast differs depending upon the television channel you are listening to or the media article you are reading.
San Diego Condos: A Hot Commodity
By: Phoenix Delray | 18/06/2008 | Real Estate
This article discusses about the increasing popularity of Condominiums in San Diego.
Make your Homes for Sale Offer Contingent Upon a Clue Report
By: John Harris | 30/11/2006 | Real Estate
In most state's, you purchase title insurance to ensure you are not also buying the responsibility for earlier liens against the property. In a finite few states, you pay to have an abstract search to do the same.
Five Factors to Consider Before Investing in Residential Real Estate
By: John Harris | 15/03/2007 | Real Estate
During the past decade, many people have jumped into residential real estate investing. This was never so true as during the recent real estate boom. People read all the “get rich quick” schemes that litter the book shelves of libraries and book stores — use other people’s money, use no money of your own, and make millions!
Your Fico Score and Purchasing San Diego Real Estate
By: John Harris | 09/08/2006 | Real Estate
You have found your perfect piece of San Diego real estate, and now you only need secure a real estate mortgage at a great rate. Simple, right? Definitely not!
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Investing with no money.
By: supermania | 20-11-2007
I'm 30 with no assets. I want to start investing in real estae but have no money.How can I start?
Where can i get aerial photos of Haifa, Israel
By: naknik | 15-11-2007
where can i get aerial photos of Haifa, Israel
Looking for inexpensive hotels near Sea World, San Diego
By: ALL4114ALL | 14-11-2007
I'm planning a trip to San Diego. I want to see everything at the zoo & Sea World & am looking for an inexpensive hotel to stay at near those places. Thanks in advance for your help!
Nationalization in georgia
By: popopo | 14-11-2007
what are the chances for nationalization of the real estate in georgia? (the east european country)
Real estate investing
By: Adisa | 13-11-2007
when will there be the best real estate buying oppty in the san diego area
Real Estae Developers In Israel
By: oooriel | 13-11-2007
looking for real-estate developers in Israel. Anybody?
Q&A Powered by: 
Latest Real Estate Articles
Chennai's Expanding Real Estate Market
By: George Gonigal | 21/08/2008
Chennai is experiencing an extensive real estate growth in past one year. Chennai real estate developers are having a good business deal happening during this period of time.
Mortgage Bill by End of Year to Boost Property Market in Northern Cyprus
By: Linda Cartwright | 20/08/2008
Sungur: A Mortgage Bill has been proposed, for approval by the end of this year, in Northern Cyprus.
The plans are set to boost property market, and some experts suggest that the move will also benefit ex-pats.
A draft mortgage bill prepared by the Estate Agents Union has been presented to the...
Achieving Your First Property
By: Joaquin Costa | 20/08/2008
Buying your first home is not easy, but for sure it is rewarding when you manage to safe and pay for the deposit of your new home.
House Door Choices
By: Ed Terran | 20/08/2008
When you decide to remodel and want to change out doors, do not forget a couple of important factors. The style must match your décor or the doors are not going to enhance your home. They will actually take away from the look you are trying to achieve. The fittings...
We Buy House Professionals Taking Advantage Of The Slow Real Estate Market
By: Shaun Greer | 20/08/2008
Real estate investors are buying houses while other home buyers are sitting on the side lines
Chinese Developers Look For Foreign Funding
By: Gregory Smyth | 20/08/2008
The Chinese property market and property management in China have largely been a domestic affair in recent years, with tight government controls to ensure that speculative inflows remained at a minimum. However, the government is now wanting to cool down the rampantly growing real estate market in China, and as such is looking for foreign investment.
The Benefits to Purchasers of Home Auctions
By: Patricia Stevens | 20/08/2008
The real estate opportunity is huge, especially the foreclosure and tax lien market. Read about the income being created by everyday indivduals.
Right Now is the Time to Buy Real Estate in Provo, Utah
By: Art Gib | 20/08/2008
Real estate has never been easier to find or more affordable in Provo, Utah. For a short time, the market hit a decline and prices lowered.
More from John Harris
Encinitas Offers Unparalleled Charm And Beauty
By: John Harris | 15/10/2007 | Real Estate
A diverse community in San Diego County, Encinitas is home to all of the beauties of Southern California. With stunning natural landscape and a prospering local economy, many real estate investors are flocking to this booming coastal town, eager to build or buy property. Homes for sale in Encinitas may...
Homes For Sale San Diego Brimming With Beauty
By: John Harris | 15/10/2007 | Real Estate
Once rated "America's Finest City," San Diego is one of the most prominent areas in Southern California. Those purchasing homes for sale in San Diego will reap numerous rewards. Dazzling coastal land, impressive real estate, and desirable climates surround these homes for sale. San Diego real estate continues to grow...
Vista Celebrates History Of San Diego County
By: John Harris | 15/10/2007 | Real Estate
Residing in the northern area of San Diego County, Vista real estate is alive with the beauty of Southern California. With stunning natural attributes, ideal location, and prospering economy, the vicinity has become a popular option for potential home buyers. The historic character of the Vista area adds to the...
San Diego Realtors Assist In Home Buying Process
By: John Harris | 15/10/2007 | Real Estate
Buying a home is often the most important, yet grueling, process you will ever encounter. Selecting a dedicated San Diego realtor can ease some of the pressures, while also allowing you to find the home you have always wanted.
The Committed San Diego Realtor Makes Buying a Home Easy
A reputable San...
San Diego Realtors Make Home Buying Easier
By: John Harris | 19/09/2007 | Home and Family
One of the most notable locations in Southern California, the San Diego area is becoming a prime spot to buy a home. Pleasant climate and beautiful real estate are just a few of the reasons that individuals are flocking to this charming community; and with many more advantages available, the attraction of San Diego will continue to develop.
San Diego Realtors Assist in Buying a Home
By: John Harris | 19/09/2007 | Home and Family
Buying a home is the biggest and most important investment you’ll ever make. Enlisting the aid of a reputable San Diego realtor can help with all of the details and decisions that come with the home buying process.
Choosing a Suitable Real Estate Agent in San Diego
By: John Harris | 19/09/2007 | Home and Family
Deemed “America’s Finest City,” San Diego provides the best that life has to offer. Sunny skies, perfect weather, breathtaking beaches, and coastline; the San Diego area is one of the county’s most popular vacation destinations. With so many living advantages, many are also flocking to the area searching for available real estate.
San Diego County Realtors Assist in Home Purchase
By: John Harris | 19/09/2007 | Home and Family
One of the country’s favorite vacation destinations, San Diego is quickly becoming an ideal place to invest in real estate. With an ideal climate and sensational real estate options, San Diego County is the perfect place to purchase or build a new home.
|
|
Finance 
