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Scoop.it!
See how real estate appraisers will determine the homes they appraise. Learn all of the impactful factors in house appraisals. 
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Scoop.it!
See how to prepare for a real estate appraisal. Preparing for an appraisers arrival is a key part of having your appraisal turn out the way you want it too.
Bill Gassett's insight:
When you are selling a home you can expect the buyer's lender to do an appraisal on your property. The appraiser is a huge milestone to get past when you are selling a house. If you don't have a successful appraisal, the buyer will not get their loan and won't be able to buy your home.
For this reason it is essential to prepare for the buyer's appraisal. In the article at Maximum Real Estate Exposure, you will see some of the best tips for being prepared for the lenders appraiser.
By following the tips you will dramatically increase the odds that the appraisal process will not only go smoothly but that your home will appraise.
When your house does not appraise, you will be fighting an uphill battle for the sale to continue.
A couple days of your time and energy will go a long way to having an appraisal that works for everyone.
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A real estate appraiser plays a crucial role in determining the market value of a property. Market value is the estimated price a property would sell in the current market conditions. Appraisers use methods and factors to arrive at an accurate valuation.
One of the primary methods used by appraisers is the sales comparison approach. This involves comparing the subject property with recently sold properties in the same area similar in size, condition, age, and location.
By analyzing the sales prices of these comparable properties, the appraiser can make adjustments based on any differences to determine an estimated value for the subject property.
Another method commonly employed is the cost approach. This approach involves evaluating the cost of construction and the value of the land to estimate the replacement cost of the property. The appraiser considers depreciation, improvements, and market conditions to arrive at a value.
This method is beneficial for new or unique properties with limited comparable sales data.
The income approach is often used for properties that generate income, such as rental properties or commercial buildings.
Appraisers calculate the value based on the property's potential income and expenses.
They consider rental, vacancy, operating expenses, and capitalization rates to determine the property's income potential and resulting value.
In addition to these methods, appraisers consider various factors influencing market value. These factors include the property's location, size, condition, amenities, and recent renovations or upgrades.
Economic factors such as supply and demand in the local market, interest rates, and economic trends also play a part in the valuation process.
A real estate appraiser employs a comprehensive approach to determine market value. By analyzing comparable sales, considering the cost of construction, evaluating income potential, and considering various property and economic factors, they provide a reliable estimate of a property's worth in the current market conditions.