A qualified real estate appraiser is a trained professional who uses several methods to reach an unbiased opinion about the value of a piece of property. This information is valuable to buyers, sellers, and tax assessors, but it can seem mysterious or confusing to people unfamiliar with the methods. To help you better understand the process, Metro Appraisal Associates, the leading real estate appraisal service in Rochester, NY, answers three of the most commonly asked questions.
The Real Estate Appraisal FAQ
What Is a Real Estate Appraisal?
An appraisal is the determination of a property's value. Professionals typically use three methods to arrive at a number: cost, sales comparison, and income. The first approach assesses value based on the price to replace the property. The second—considered the most accurate—bases worth on comparisons to similar properties that have recently sold in the neighborhood. Finally, the third measures what an investor would pay based on the rental income potential.
Why Would You Need One?
It is required by lenders before they'll secure a home loan. States base property taxes on the appraised value, so homeowners may schedule one to reduce their tax burden. During a divorce or deposition of a deceased's estate, these assessments are necessary for fair asset distribution. Finally, if you are the subject of a lawsuit, an appraisal will be required to value your total assets.
Is It the Same as a Home Inspection?
A real estate appraisal and a home inspection are not the same. The former evaluates a property's dollar value. The latter, on the other hand, examines the state of the land, structure, and its components, such as the integrity of its roof, the condition of its mechanics, and any problems a buyer should be aware of.
What Is Contained in an Appraisal Report?
A report identifies the client and any intended users, as well as the purpose of the appraisal. It lists the property's location, physical attributes, and any of its encumbrances, easements, leases, or covenants. It also explains the scope of work necessary to complete the appraisal, and provides the dollar value of the assessed item.
Metro Appraisal Associates, Rochester, NY's premier real estate appraisal service, will provide an accurate evaluation of a piece of property to help you reach a fair purchase price or reduce your tax burden. Visit their Facebook page to connect with them online, or call (585) 225-3042 to schedule an appointment with a skilled, reliable expert.