Real estate appraisal is that the true one? Real estate assessment or property valuation is the method site link of determining the value of the property on the basis of the greatest and the greate...
Real estate assessment or property valuation is the method site link of determining the value of the property on the basis of the greatest and the greatest use of real property (which ostensibly translates into determining the fair market value of the property). The one who performs this real estate assessment exercise is known as the real estate appraiser or property value surveyor. The value as dependant on real estate assessment may be the fair market value. The real estate appraisal is performed using various techniques and the real estate appraisal values the home as different for difference purposes e.g. Different values might be assigned 2 by the real estate appraisal to the same property (Improved value and empty value) and again the same/similar property might be assigned different values in a residential zone and a commercial zone. Nevertheless, the value given because of this of real estate assessment might not be the value when assessing the house for investment that a real estate investor would consider. Actually, a real estate investor might completely disregard the importance that comes out of real estate assessment process.
A good real-estate investor article would examine the property on the basis of the developments going on in the region. Therefore real estate assessment as done by a real estate investor could produce the value that the real estate investor will get out of the property by getting it at a price and selling it at a higher price (as in today's). Similarly, real estate investor could do their own real estate appraisal for the estimated value of the property in, say 2 years time or in 5 years time. Again, a estate investor might perform his real estate assessment based on what value he/she can create by trading some amount of money in the property i.e. a estate investor might decide on purchasing a dirty/scary sort of property (which nobody wants) and get some slight repairs, painting etc done in order to improve the value of the property (the value that the real estate investor would get by selling it in the industry). So, here the meaning of real estate appraisal adjustments completely (and can be quite distinctive from the price that real estate appraiser could emerge with the property) on if the real estate appraiser performed a estate appraisal exercise.
A real estate investor will usually base site link his investment decision with this real estate assessment he does by himself (or gets done through someone). Therefore, could we then term real estate appraisal as a very real real estate appraisal?