Why Property Appraisers are Important

Regardless of the type of property a professional property appraiser can provide you with an unbiased, analysis of its worth. Understanding the value of your property is essential for making informed decisions and it’s equally important for your financial well-being.

Every property is unique – whether it is commercial or residential and there are just too many factors that add to the total ‘value’ of the property. The location of the property, the age, the amount of modifications and enhancements, the rate of similar properties, and it’s future potential – all add up to establish the current price of the property. Only an experienced appraiser can collate all the data and give you a detailed report about your property.

If you are looking for either selling or purchasing real estate, here’s why a professional property appraiser could be of great help:

Discover the true value of your property

A seller will naturally quote a higher price for his property and a buyer would want to strike a deal at a lower price. A professional evaluator helps you understand the true value of the property at hand after considering all the factors that add up to its current market price. After all, no one wants to pay more or receive less than the actual value of the property. An appraiser is an impartial, neutral evaluator who assists property owners to strike the right deals for the properties they are interested in.

They have the right knowledge of the real estate market and trends

A professional appraiser is qualified for the job and has significant experience in the field. A new york property appraiser has the knowledge of all the rules, regulations and laws that govern the real estate market and can provide you with a credible evaluation of your property. These appraisers are aware of the range of factors that affect a home’s value such as its size, location, condition, age, quality, and more. They are able to collate all data and provide you with the most accurate evaluation of your property as per the most recent market trends.

Both buyers and sellers benefit

If you are a prospective buyer, appraisals are a good way to ensure that you pay a fair price for the home you are buying and not extravagantly more than it’s actual worth. It gives you enough information about the property you wish to buy.

On the other hand, if you are a seller, a professional valuation will ensure that you do not settle down for anything less than what your property is worth.

The lender benefits too

The bank, who lends money to the prospective buyer, also requires knowing the true value of the property. Once the bank is assured of the true value of the property by a professional valuation, they can easily make a lending decision after assessing all the relevant and possible risks.

An appraiser plays a crucial role in assuring that the value of the property is ‘right’ for all involved in the transaction. The buyer, the seller and the lender all benefit from the appraisal.

Why Property Appraisers are Important

Regardless of the type of property a professional property appraiser can provide you with an unbiased, analysis of its worth. Understanding the value of your property is essential for making informed decisions and it’s equally important for your financial well-being.

Every property is unique – whether it is commercial or residential and there are just too many factors that add to the total ‘value’ of the property. The location of the property, the age, the amount of modifications and enhancements, the rate of similar properties, and it’s future potential – all add up to establish the current price of the property. Only an experienced appraiser can collate all the data and give you a detailed report about your property.

If you are looking for either selling or purchasing real estate, here’s why a professional property appraiser could be of great help:

Discover the true value of your property

A seller will naturally quote a higher price for his property and a buyer would want to strike a deal at a lower price. A professional evaluator helps you understand the true value of the property at hand after considering all the factors that add up to its current market price. After all, no one wants to pay more or receive less than the actual value of the property. An appraiser is an impartial, neutral evaluator who assists property owners to strike the right deals for the properties they are interested in.

They have the right knowledge of the real estate market and trends

A professional appraiser is qualified for the job and has significant experience in the field. A new york property appraiser has the knowledge of all the rules, regulations and laws that govern the real estate market and can provide you with a credible evaluation of your property. These appraisers are aware of the range of factors that affect a home’s value such as its size, location, condition, age, quality, and more. They are able to collate all data and provide you with the most accurate evaluation of your property as per the most recent market trends.

Both buyers and sellers benefit

If you are a prospective buyer, appraisals are a good way to ensure that you pay a fair price for the home you are buying and not extravagantly more than it’s actual worth. It gives you enough information about the property you wish to buy.

On the other hand, if you are a seller, a professional valuation will ensure that you do not settle down for anything less than what your property is worth.

The lender benefits too

The bank, who lends money to the prospective buyer, also requires knowing the true value of the property. Once the bank is assured of the true value of the property by a professional valuation, they can easily make a lending decision after assessing all the relevant and possible risks.

An appraiser plays a crucial role in assuring that the value of the property is ‘right’ for all involved in the transaction. The buyer, the seller and the lender all benefit from the appraisal.

Seven Economic Principles of Real Estate Valuation

Property valuation is typically essential to determine a fair market value of the real estate.  Before a buyer or a seller can make a decision, it is necessary that they have all the relevant information about the property in question. Real estate valuations are generally driven by economic principles that ensure that both the buyer and the seller benefit from the deal.

Some of the economic principles that influence a property evaluation are supply, substitution, progression, increasing returns external factors and regressions.

Here are the seven economic principles of real estate valuation you should know about in order to take informed decisions about your purchase or sale:

1. Supply and demand

The basic idea of this principle is that when the supply is high, the price of the property will drop. This is mainly because there aren’t as many buyers. When the supply is low, and the demand is high, the price of the real estate property will go up. This is one of the economic principles that have been influencing the real estate market for centuries.

2. Substitution

In economics, the substitution principle states that when several similar or commensurate commodities available, the one with the lowest price always attracts the greatest demand and the widest distribution. According to this principle, a buyer will not pay more for one property than for another one that is equally desirable. The price of acquiring an equally desirable property tends to set the real value of a property.

3. Balance

The law of balance governs the principles of increasing and decreasing returns. It is also commonly known as the law of variable proportions. The real property value is created and sustained when contrasting, opposing or interacting elements are in a state of equilibrium. The basic idea is that additional expenditures (beyond a certain point) will not yield an equivalent return.

4. Externalities

This principle states that external factors can have either positive or negative effect on the effective value of a property. Some of the essential amenities and facilities around the property such as vicinity to major public transport facilities or highways or medical care facilities etc, could positively impact it’s price. Negative influences on the valuation of a property include ineffective waste management that causes clutter etc. that cause some kind of inconvenience to the residents.

5. Progression

In this principle, even if you are selling an old property, but the other houses surrounding it are renovated and increased in value, the value of your property will also be effectively pulled up because of its location.

6. Regression

This principle is exactly opposite to that of progression. This essentially means that if your property is the best in the neighborhood, and all the other houses are in tatters, it will negatively impact the price of your house too.

7. Highest and best use

If your property is at the edge of a development area, you can sell it to a developer at a higher price than its actual worth.

Professional Pennsylvania property appraisers can help you accurately valuate your property taking into consideration all the relevant factors so that you can take an informed buying or selling decision.