What is the Difference Between a Property Valuation and a Property Appraisal?

Appraisals and valuations are two often-confused processes in the real estate business. Although they may sound similar in function and purpose, there are key distinctions between the two reports. The simplest way to differentiate property appraisal service and property valuation is by looking at the nature of both reports. Property valuation is a more formal report on the value of a property, as opposed to an appraisal, which is mostly an educated estimate from a real estate professional who has good knowledge of recent sale prices and local area conditions. 

Formal property and/or business valuation services are conducted by qualified and certified valuers. These are professionals who have undergone the prescribed training and education to receive the right qualifications in the field of valuation. They make sure that all aspects, features, as well as issues that relate to a property are taken into account when creating their final report of the property’s condition and value. This is why valuations take much longer to complete. The process involves much more complex tasks than visual inspections, which appraisals are mainly based on. A more comprehensive look into a property’s value takes into account its location, the building structure, the condition of the building structure, its structural faults, its features, the encumbrances or caveats on the property, additional features such as in the case of properties in rural areas (e.g. barns and orchards), and local council zoning.

A property valuation—just like a property appraisal —results in a written report, but one that offers a more comprehensive detailing of the property’s value based on the above stated factors. Valuations are typically requested when a more definitive value of a property or business is required. Property valuations are useful when undergoing property settlement as well as when obtaining financing aid from a bank or a lending institution. It can also be requested to establish value of a particular deceased estate. A valuation may likewise be court ordered as part of a dispute resolution.

Engaging the services of a qualified valuer is recommended if you want to be sure about the true value of a property. However, a property appraisal is also a great tool for guidance when determining proper pricing for real estate.

RDC Appraisals offers comprehensive real estate and business valuation services along with counseling services, including commercial and residential property appraisal service to help private clients, business owners, institutions, and agencies make more informed decisions when it comes to their real estate investments.

5 Ways litigation support makes attorneys better

Litigation support in New York helps to organize factual information and manages electronic information in its native form. Litigation support encompasses all or any activity that does relate directly to offering legal advice to clients.

Litigation support company offers these services to attorneys to help them access the latest technology, deliver strategic benefits in litigation, gain new clients, and add to the attorneys' bottom line.

Here are 5 ways litigation support makes the practice of attorneys better:

Preparing electronic data

In today's litigation world, managing electronic data and files is a necessary task. Also, each litigation case indisputably has some native or original files that need to be managed in addition to imaged PDFs. Litigation support company helps to maintain this data so that attorneys can have better access to critical information.

Access information when required

For getting started on tedious, legal work, attorneys need factual data at their fingertips. Litigation support company delivers information in highly relevant blocks, eliminating the need for lawyers to waste their precious time looking for key facts, documents or deposition testimony so they can focus on what's really important - providing legal advice.

Improving work product quality

With the massive volume of documents that attorneys need to present, including a ton of paperwork that needs to be processed,  attorney's have their hands full when it comes to litigation. With the support of the litigation support company, attorneys can break up preparation time for non-legal issues, allowing them more time and energy to dig deeper on legal and factual issues. This helps to improve the overall quality of their work.

Legal coding and indexing

Litigation support company offers legal coding and indexing services to catalog legal documents so that can be easily arranged, prioritized, retrieved, or reviewed - rending more meaning to attorneys. All the documents are coded and indexed in project-specific criteria with personalized specifications, all with the help of remarkably skilled coders, standard conventions, numerous levels of quality control, and the latest technology.

E-Discovery

Litigation support companies in New York are equipped with technology know-how,  in-depth knowledge, resources,  and years of experience to help steer your business through the complete process of E-Discovery. It allows attorneys to manage, access, and visualize all case-related information meticulously and assist you with all your E-Discovery requirements and electronically stored information.

Litigation support company can help to elevate your efficiency and reputation, and help grow the attorney's practice into something bigger.

What are some of the best ways to improve the value of your property?

Commercial property appraisals are conducted to find out the value of your commercial space or home when is up for selling or for refinancing. Performed by professional New York property appraisers, the final figure of your property may be much higher than the original price or much lower than the value of your home as is seen in times of real-estate slumps.

So, what can you do to do to ensure a high appraisal value of your property? Here are some tips for you.

Spruce up your property

Declutter, touch up the paint and make minor changes to spruce up your home or office before the process of commercial property appraisal begins. Beautify your yards by trimming your trees and tearing out any dead bushes - it helps to create a larger space. Garbage, dirt, and strange odors are not attractive features, make sure that you address them before the visit of your New York property appraiser. Outdoor lights, strategically placed flower-plants, and a new mailbox make your property more inviting. These low-cost tips are perhaps the easiest way to increase the value of your property.

Highlight major improvements

If you have made any significant improvement to your property, ensure that your New York property appraiser knows about it. For example, a new carpet, double pane windows, and door to cancel noise, updated siding  - which is harder to notice, but can dramatically boost your home appraisal.  A detailed spreadsheet stating what was spent on each restoration project along with before and after photos can persuade your appraiser to give a higher value to your property.

Go Green

A big plus in the value of your home is going green. Whenever you are furnishing your home, ensure that you add appliances that are environmentally friendly. Anything you can do to conserve energy will add more savings to your property than its cost, making it a big plus in the eyes of your appraiser.

Developments in your town or neighborhood

If there are new exciting developments in your city or neighborhood, ensure that your property appraiser knows about that. Modern, upscale restaurants, a better and a bigger park, or a new community center can boost the price of your property.

Conclusion:

Remember, to do what you can to receive a better value for your property. But, it is not smart to over-invest in the renovation that you probably would not recover.

5 Economic Principles of Real Estate Valuation

Real estate valuation is defined by economic, legal, and financial factors which make real estate distinct from other commodities. Commercial real estate valuation and residential appraisal services are required to calculate how these factors affect the price of real estate and how it drives the real estate market.

Here are 5 economic principles of real estate valuation:

Demand and Supply

Real estate valuation is significantly affected by the demand and supply of real estate properties. For example, the demand for sea-facing properties is very high versus its supply; hence these properties are in greater demand, leading to an increase in their prices. Vice Versa,  if there is an oversupply of residential properties, the demand will reduce, and consequently, the real estate value and rents will go down.

Substitution

The value of any property is established in comparison to other desirable similar properties. In theory, buyers will not desire to pay more for any property than what it would cost to obtain similar real estate properties with equal appeal and utility.

Principle of balance

This principle refers the relationship that is between the principal cost added expenditure incurred on the property and the value it returns. The principle states that for every dollar invested in the value of the property, its value should increase by more that one dollar. 

Principle of progression

This principle states the real estate valuation of your prompt will depend on the perceived value of a location, and it will slate with the increase in the perceived value of your site. For example, if you are living in a house that is old and craggy, but your neighborhood has homes with the newly renovated apartments, then the price of your property will also increase because of the increase in the value of other homes in your location.

Principle of regression

This principle is exactly the opposite of progression principle. The idea behind regression principles that the real estate valuation of your property will be reduced if the perceived value of the home in your location is reduced. For example, even if you have renovated your home, and it is the best house on the block in a neighborhood of hurricane-hit homes, the value of our home will decrease.

On the face of it, real estate valuation might seem very simple. However, it is a complicated process that requires detailed planning and expertise. You will need professional residential appraisal services that will help you handle your real estate valuation expertly.

What are the Economic Principles of Real Estate Valuation?

Characteristics of a Real Estate Market

Real Estate is by character defined by economic, legal and financial circumstances. As the real estate market exists in a regional and national economy set-up, any changes in these economies will affect the real estate scenario in a location. Real estate is pricy because individuals, businesses and institutions want to buy property and this creates an economic value for real estate. While property rights are exchanged in their typical markets with features of their own, the exchange is influenced by marketing techniques and transactions. 

Real estate market is chancy

Real estate markets fluctuate, where prices go up and down depending on demand and supply and changes in national and regional economies. This makes the real estate market unstable and risky, which is heightened by the involved significant capital costs. For real estate transactions to be genuine, the need for legal recognition for ownership with the rights of occupation is vital. Real estate is also subject to market risks, financial risks and business risks. 

A Real estate valuation is important

A real estate valuation is important for you to calculate a prediction of price-taking clues from the market forces, factors of finance, accounting, economics, and law driving the real estate market.

The Economic Principles Affecting Valuation

Principle of Anticipation

The principle of anticipation is a method where the appraiser uses the income approach to determine the value of a property. The appraiser will estimate the present worth of future benefits for the property. The value can also depend upon the anticipated utility for the property, or what the property can be used for.

Principle of Demand and Supply

The value of a residential or commercial real estate goes up depending on its demand and supply position.  For example, if there ain’t many properties facing beautiful scenic views, the demand for such a property will be more and the value of that property increases to meet that demand. Demand is also affected by craving. If there are too many apartments in a given area, the demand will reduce.

Principle of conformity

This principle is about how land is utilized in a particular area. For example, land must be used to reasonably conform to the area's existing standards. An orchard in the middle of a residential area where several condominiums have been built doesn't really conform with the current use of the land.

Principle of Substitution

Usually in a commercial real estate valuation or a residential one, a property’s value is determined by the cost of an equally desirable substitute property. This means one shouldn’t pay more for a property than what it would take to purchase a site and to construct a building of equal appeal and utility. 

For any residential real estate appraisals enlist the support of an experienced real estate agent like RD Clifford Associates