PROFESSIONAL APPRAISAL
Nothing really determines the sale price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. There is no "Kelly Blue Book" for homes, and there is no computer program that can calculate all the different factors to reliably predict market value. Each home is unique. Real estate appraisal is the process of developing a perspective of value for real property, performed by a licensed appraiser, and paid for by the prospective buyer. This is also in most cases, but not always, the market value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing if the seller obtains one before listing the property. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to loan to their borrowers.
The important factors in a house appraisal are:
• Dwelling type (e.g., one-story, two-story, split-level, site built or factory-built) • Features (including design) — materials used and the kind of structure present and how they were built • Quality of construction • Improvements made • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments
7
Powered by FlippingBook