Real estate appraisals, real estate valuation or appraised property is the legal process of determining the actual worth of a certain property. For many property transactions, appraisals are required because they happen infrequently, and each property is unique, like corporate shares, which are often traded every day and are virtually the same. In other cases, appraisers use other techniques, such as looking at the current market price, comparing it to the actual selling price, or looking at what comparable properties have been sold for before, so that the value of the property can be determined. There are three different types of appraisals used:
Appraisal reports on real estate appraisals are often found on the sales receipt. Real Estate Appraisals (REA) can also be obtained by requesting copies from the county recorder’s office in the jurisdiction where the sale was made. These reports are usually used for the purposes of tax preparation, real estate valuation, and loan qualification. They can also be used to verify the authenticity of title documents or financial instruments. The information gathered from REA reports is not used for any purpose other than establishing the fair market value of the property that was sold.
The fourth type of appraisal is property value as determined by a certified public accountant. This method is often called real estate appraisal and is used by most real estate financing companies and brokers. A certified public accountant determines the estimated value of a property based on a number of factors, including the value of similar properties and the area in which the property is located. A certified public accountant uses mathematical calculations in order to determine the value of a property. A qualified appraisal expert, who is licensed with the Department of Revenue, must determine the worth of the property by performing a thorough investigation, reviewing relevant tax information, and examining other documents and information, like mortgage payments. He then determines the estimated value of the property and submits it to the buyer or borrower.
Appraisals can be done by a single party, or by a team of experts. For example, in a title search, an appraiser could look at the previous market value of the property, then conduct a survey, and a new appraiser could look at the current market value to determine an accurate market value. Another example would be to find a property that is in good condition and have minor repairs. and make a comparison to another comparable property that is in better condition. The results would be compared, then the finalize a value of the two properties and use the difference to establish an appraised value.
In some cases where a buyer is seeking property as an investment, they may not want to pay more for real estate than it is really worth. In this case, they may not have the budget to hire a qualified appraiser and thus would go for less than the true value. An experienced real estate agent can then help them achieve their goals, since an expert agent can perform the actual appraisal and can verify that the actual value of the property is higher than what is being listed in the listing or is a good bargain.
The Internet is also useful in obtaining free appraisals. In fact, with a simple Internet search on the name of the property you are looking for, real estate agents have access to multiple sites, each site having the same basic information. Some sites, however, allow buyers to input additional information and make the property’s market value available to clients so that they can make informed decisions.
If a client feels that a property has been over-priced, it is best to contact a real estate agent. The agents can help the client to negotiate with the seller to get the price lowered before the closing date. In some cases, a deal can be made if the seller will agree to remove any liens or mortgages and the buyer will pay the difference between the sale and the cost of the item, giving the seller a commission for the sale.
In today’s competitive real estate market, it is important to always research your options, regardless of whether you are purchasing a home, a rental property, commercial property, or something else. With the Internet and real estate agents to help you, researching your options is simple.