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Real estate appraisal is that the real one?

Real estate assessment or property valuation is the process of determining the value of the property on the basis of the best use and the greatest of real property (which generally results in determining the fair market value of the property). The person who performs this real estate appraisal exercise is called the real estate appraiser or property worth surveyor. As dependant on real estate appraisal the value could be the fair market value. The real estate appraisal is performed using different methods and the real estate appraisal values the property as different for difference purposes e.g. the real estate appraisal might assign 2 different values to the exact same property (Improved value and vacant value) and again the same/similar property might be given different values in a residential zone and a commercial zone. But, the value assigned as a result of real estate assessment mightn't be the value that a real estate investor would consider when assessing the house for investment. In fact, a real estate investor may totally ignore 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 your community. So real estate appraisal as completed by a real estate investor would come up with the importance that the real estate investor could possibly get out of the home by getting it at a price and selling it at a higher price (as in today's). Similarly, real estate investor can do his own real estate appraisal for the estimated value of the home 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 make by investing some amount of cash in the property i.e. a estate investor might decide on purchasing a dirty/scary kind of property (which no one wants) and get some minor repairs, painting etc done in order to increase the value of the property (the value that the real estate investor could get by selling it in the industry). Therefore, here the meaning of real estate appraisal adjustments completely (and can be very different from the value that real estate appraiser would come out with if the real estate appraiser performed a estate appraisal exercise on the property).

A real estate investor will usually base his financial commitment with this real estate appraisal he does by himself (or gets completed through someone). Therefore, can we then term real estate appraisal as a very real real estate appraisal? clicky