stock exchange.
Real estate appraisal (“property valuation”) is the process of arriving at and developing a perspective of value for real property. This many times (but not always) is also close to its market value — i.e., what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions generally require appraisals because the same property does not sell every day or month or even every year, they happen infrequently. Every real property is unique in features and characteristics and the market is constantly changing. A property that sold for $300,000.00 7 years ago could be worth far more or less than that amount today and also could have been updated or degraded since the last time it sold. An appraisal helps in various decision points. The seller can use a recent appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to determine how much money to lend to their borrowers (provided their income qualifies for the loan).
The important factors in a house appraisal are:
• Dwelling type (e.g., one-story, two-story, split-level, factory- built • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • Comparable sales • Location — the type of neighborhood, zoning areas, proximity to other establishments • Age of property • Amenities • Size • Depreciation
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