use the appraisal as a basis for pricing; the buyer can use it on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.
The principal factors in a house appraisal are:
• dwelling type (e.g., one-story, two-story, split-level, factory-built) • features (including design)—materials used, the kind of structure present, and how the structure was built • improvements made by the seller • comparable sales • location—kind of neighborhood, zoning areas, proximity to other establishments • age of property • size • depreciation
GENERAL CONDITION OF THE PROPERTY
Condition, of course, is a crucial factor in valuation. Location is also a factor; but as property cannot change location, it is often the upgrades or improvements to a residential property that can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals with expertise in your region. Their job is to determine an estimated value by examining the property, looking at the initial purchase price, and comparing it with recent sales of equivalent properties. The fee for this service is usually between $500 and $700.
CURRENT MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL
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