property valuation, real estate valuation or even real property appraisal is the process of determining value, usually for real estate. Real estate transactions frequently require appraisals as they happen infrequently, and each property is different, unlike corporate shares, that are traded everyday and are almost identical. Because properties differ in their values and are generally valued based on what the owner is able to sell them for, there are many forms of valuation used, including:
Appraisal can be done by a qualified appraiser, who can be a real estate agent, appraiser, lawyer or any other professional who has had some training in valuing property. Appraisals are conducted for all types of properties; commercial, residential, industrial, agricultural, government, etc. The following is a listing of common appraisal methods used by most real estate agents.
Appraisement is one method of valuation that involves the use of measurements only. It may include the measurement of the property, its size, shape and dimensions. This method of valuation is more time consuming and expensive than other methods, and is not commonly used by those who deal with real estate.
There are two types of appraisal, both the buyer and the seller pay for and appraisers attempt to get an equal amount. The seller pays the buyer’s agent and the appraisers try to obtain an equal amount.
Most appraisers will provide to their clients a price range, but not all appraisers are aware of the fact that buyers can go over this range and ask for a higher price. In fact, if a seller is willing to go over the buyer’s range, he can receive a better price than what was stated. If a seller is willing to overstate the value of his property and the appraiser is aware of this, the seller will likely not get a good price, unless the appraiser is a real estate professional.
Appraisal is a complex process, but not as complicated as it seems. Once the realtor has determined the value of your property, he or she can then make an offer for your home based on this value and the seller’s offers and the closing costs. This process typically takes less than 24 hours and will give you an offer to buy the house for the asking price.
As you may know, the real estate market is a buyer’s market right now, meaning buyers have a lot of money to spend on homes. However, because of this condition, there is a great deal of competition in the real estate market, which may keep your real estate agent’s offer below the asking price.
If you are interested in learning more about the process, visit your local real estate broker’s office. They will be able to answer any questions you have and can show you a few different forms of valuation. Be sure to speak to a real estate professional if you need any more information about a property’s valuation.