The Foundation Of A Sound Real Estate Investment
Finance Tips For prospective homeowners, property appraisals are key to making a smart financial decision.
Buying real estate is one of the most significant investments that you will make in your lifetime! How can you be confident that the price that you are paying is fair in the marketplace?
Whether you are buying your first home or considering property as an investment, a real estate appraisal will help you make an informed decision. A property appraisal provides you with an unbiased estimate of market value, specific to your property. The property appraiser works for you, providing you with the information you need to make those tough decisions. It will save you time, money and heartache in the long-run!
"Whether you are buying your first home or considering property as an investment, a real estate appraisal will help you make an informed decision."
Appraising a residential property involves:
→ Comparing recently sold properties to the property being valued
Since the objective of the appraisal is to estimate the price that the subject property would most likely sell for if exposed to the marketplace, recent sales of similar properties are used for comparison and as benchmarks. Comparable sales represent what other informed buyers in the marketplace are willing to pay for similar features, location and amenities.
→ Adjusting the sale price based on key differences in the property
Since no two properties are exactly alike, the appraiser gathers information on the property in question and the comparable sales. The comparable sales are adjusted to reflect any variations, such as location, size or amenities, between the comparable sales and the property in question. The adjusted sale price of each comparable sale then provides a reasonable range of value to guide the appraiser in estimating a market value for the property.
Knowing the market value of a property will ensure that you are paying the right price for your home, making smart renovation decisions, or borrowing the right amount. When it comes time to sell, an appraisal will help you to understand your position in the marketplace and make informed decisions that can save you thousands of dollars.
"The property appraiser works for you, providing you with the information you need to make those tough decisions. It will save you time, money and heartache in the long-run!"
Hiring an appraiser: Key things to consider
- Discuss your requirements with the appraiser, so he or she can help you select the type of report that is most suitable.
- Hire an appraiser that has a professional designation.
- Ensure that the appraiser has significant experience in the type of appraisal services that you are requesting.
- Ask for references to ensure the appraiser is the right fit for you