Property valuation, real estate valuation or land valuation basically is the procedure of determining the fair market value of a given piece of real estate. Real estate sales sometimes require actual appraisals as they happen infrequently, since every home is different, just like corporate shares, which are commonly traded daily and are all alike.
Many people who are looking to sell their homes or buy one think that it would be a good idea to purchase an appraisal to determine their potential to make a profit on their property. However, this is rarely done and most home buyers simply ask for a written value estimate from the seller. While a written price may not be considered as thorough as an actual appraisal, it is still a helpful way to determine whether the home is worth buying or selling.
Most appraisers will have a certain percentage set aside as their own estimate of the property’s value. This percentage is based upon the appraised value of comparable homes in that area that are sold within the same time frame and the size of the lot being appraised. The appraiser also takes into account additional factors, such as the type of construction used, type of floors, and other external factors. These are just some of the factors that should be taken into consideration when determining the value of a home.
If the home is purchased with the intent of reselling it, the appraisal should reflect the condition of the home at that time and if it was previously listed for sale. Also, if there has been any significant changes made to the property, the home’s worth should be determined and recorded. Any changes that have been made to the property over time, such as remodeling, home additions or changes to the structure of the property, should also be recorded and considered when determining the value of the home.
When a home is purchased and then resold within the same time frame and neighborhood, the value of the property goes up or down depending on how well the home’s marketability is. If there are any structural problems or major repairs needed to be done, the home’s value can go down or up. A home that has undergone major renovations or major alterations on its exterior can affect the overall value of the property as well.
If the home is purchased with a mortgage and the home buyer’s tax liens on it have been paid off, the home buyer’s appraisal will reflect these tax payments. and reflect the total value of the home. The seller can then use this value for an appraisal or use a different standard, in order to determine the value of the property. The standard is usually based on the area where the home is located.