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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 greatest and the best use of real property (which basically means 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 value surveyor. The value as dependant on real estate assessment may be the fair market value. The real estate appraisal is performed using various techniques and the real estate appraisal values the property as different for difference reasons e.g. the real estate assessment might assign 2 different values to the exact same property bare value) and (Improved value and again the same/similar property might be assigned different values in a residential zone and an industrial zone. However, the value assigned consequently of real estate assessment mightn't be the value a real estate investor would consider when assessing the house for investment. In fact, a real estate investor may totally 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 improvements going on in the area. Therefore real estate appraisal as completed by a real estate investor could come up with the importance that the real estate investor can get out of the home by buying it at a price and selling it at a much higher price (as in today's). Likewise, real estate investor could do their own real estate appraisal for the estimated value of the house 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 create by trading some amount of money in the property i.e. a estate investor might decide on purchasing a dirty/scary type of property (which no one likes) and get some slight repairs, painting etc done in order to increase 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 improvements completely (and can be extremely distinctive from the value that real estate appraiser would emerge with if a real estate appraisal exercise was conducted by the real estate appraiser on the home).

A real estate investor will generally base his investment decision with this real estate assessment that he does by himself (or gets accomplished through someone). Therefore, can we then term real estate appraisal as a truly real real estate appraisal? small blue arrow