Real estate valuations - the 3 Ws: what, when, why?!
What is behind every locked door? What is the value of the property behind it? And who can determine this value? A professional real estate appraiser knows the answers to these and many more questions. Don't be afraid to ask!
WHAT is a property appraisal? The valuation of a property is not its price, but its "market value", determined by a specialist real estate appraiser. This value is determined on the basis of specific approaches and valuation methods, one of which is the market value. It uses market analogues to derive value for a given property at a particular time. These analogues are as close as possible in parameters to the assessed object - location, type of construction, size and location, finishing works and other characteristics. There are other methods of evaluation that are used depending on the specifics of the site - revenue approach, cost approach and others. The final result of the appraisal work is a report with a derived market value of the appraised property.
WHEN do you need an assessment? The most common cases when you need a valuation of your property is in sales and concomitant mortgage lending. Each bank wants the collateral it accepts in the person of your property to be valued by an independent appraiser. Often in the period of loan repayment there is a need for a new revaluation of the property in order to have an up-to-date idea of its value at any given time. You also need an appraisal in all other cases when you want to know the value of what you own - in the division of property, for insurance purposes and tax purposes and others.
WHY use the services of an appraiser? Real estate appraisers are certified to perform this activity, and it is strictly regulated. This guarantees the professional expertise and validity of the appraisal report of your property. On the other hand, personal information about the real value of what you own is an important factor in optimally planning your personal business interests. It is good to know the value of your property before deciding how to proceed with it - it may be higher than your expectations!
It is no coincidence that wise people have said that behind every closed door there are an unlimited number of possibilities that we ourselves do not suspect!