Betti

Real estate appraisal is that the true one?

Real estate appraisal or property value is the method of determining the value of the property on the basis of the best use and the highest of real property (which fundamentally results in determining the fair market value of the property). The one who performs this real estate appraisal exercise is known as the real estate appraiser or property value surveyor. As dependant on property appraisal the value could be the fair market value. The real estate appraisal is completed using various practices and the real estate appraisal values as different for difference reasons e.g the home. Different values might be assigned 2 by the real estate appraisal to exactly the same property (Improved value and vacant value) and again the same/similar property might be given different values in an industrial zone and a residential zone. Nevertheless, the value given because of this of real estate assessment might not be the value when evaluating the house for investment a real estate investor would consider. In reality, a real estate investor might completely disregard the value that arrives of real estate assessment process.

A good real estate investor could examine the home on the basis of the developments going on in the area. Therefore as done by a real estate investor real estate appraisal would develop the value that the real estate investor will get out of the property by getting it at a price and selling it at a greater price (as in today's). Equally, real estate investor can do his own real estate appraisal for the expected value of the property in, say 2 years time or in 5 years time. Again, a estate investor might conduct his real estate assessment based on what value he/she can cause by investing some amount of money 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 slight repairs, painting etc done in order to improve the value of the property (the value that the real estate investor would get by selling it in the industry). Therefore, here the meaning of real estate appraisal modifications completely (and can be extremely different from the value that real estate appraiser would come out 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 on this real estate appraisal he does by himself (or gets performed through someone). So, can we then term real estate appraisal as a truly real real estate appraisal? understandable