Real estate appraisal is that the true one? Real estate appraisal or property valuation is the method more information of determining the value of the property on the basis of the highest and the b...
Real estate appraisal or property valuation is the method more information of determining the value of the property on the basis of the highest and the best use of real property (which ostensibly translates into determining the fair market value of the property). The person who performs this real estate appraisal exercise is known as the real estate appraiser or property valuation surveyor. The value as determined by real-estate assessment may be the fair market value. The real estate appraisal is performed using different techniques and the real estate appraisal values as different for difference applications e.g the property. Different values might be assigned 2 by the real estate appraisal to the same property (Improved value and vacant value) and again the same/similar property might be assigned different values in a residential zone and an industrial zone. Nevertheless, the value given because of this of real estate assessment might not be the value when assessing the property for investment a real estate investor would consider. Actually, a real estate investor may completely disregard the importance that comes out of real estate assessment process.
The property would be evaluated by a good real estate investor on the basis of the developments going on in the region. Therefore real estate appraisal as done by a real estate investor would develop the price that the real estate investor can get out of the home by buying it at a price and selling it at a greater price (as in our). Likewise, real estate investor could do their own real estate assessment for the expected value of the home in, say 2 years time or in 5 years time. Again, a estate investor might perform his real estate appraisal based on what value he/she can make by investing some sum of money in the property i.e. a estate investor might decide on buying a dirty/scary sort of property (which no one likes) and get some minor 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 market). Therefore, here the meaning of real estate appraisal modifications completely (and can be quite different from the price that real estate appraiser could come out with the property) on if a real estate appraisal exercise was conducted by the real estate appraiser.
A real estate investor will generally base Deos this really matter - Why Farm Holidays Might Be Worth Taking into consideration his financial commitment with this real estate appraisal that he does by himself (or gets completed through someone). So, could we then term real estate appraisal as a really real real estate appraisal?