3 Tips for Selecting a Residential Real Estate Appraiser

Choosing a residential real estate appraisal firm to handle your sensitive information is a crucial decision. When working with a third-party, it is essential that the real estate valuation services offered are accurate, reliable, and most important - credible. A biased or erroneous report can damage your reputation, setback your success, and result in missed opportunities. 

Here are some helpful tips for selecting credible real estate valuation services for your home:

1)  Local market experience

It is vital that your appraiser has years of experience in working in the market related to your property. Each city or neighborhood is unique and has social and economic factors that can differ significantly in each vicinity. If your New York property appraiser is skilled with local market knowledge, you can be sure that your appraisal report will be credible. When the valuation firm does not have access to complete property data, are less experienced, or not skilled in interpreting complex data sets, your appraisal process will be significantly compromised. So, ensure that you choose a local  New York property appraiser to conduct your residential appraisal.

2) Positive reputation

Before finalizing your appraiser, ensure that you garner honest feedback of the past clients to understand how their experience was and how the firm treats its customers and conducts its business. You can also go through online reviews such as yelp.com and go through the testimonials.  Asking referrals from friends and family if they have enlisted the services of the firm you are thinking of hiring can also help you to decide.

3) Accuracy

The most important aspect to consider is the accuracy of their work. In addition to seeking their references, you can ask for a sample report to get a fair idea of their level of work, and the quality of their adjustments and comments. However, if you take a leap of faith and decide to hire the services, do not hesitate to carefully evaluate each point of the report for the level of diligence and accuracy. You can also hire a third-party for reviewing the efficiency and helping you to judge the accuracy of your report.

Making a choice

If you take time to ask detailed questions, carefully review your first reports, and check diligently on referrals, you can be sure of making a right choice.

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

Smart Ways to Boost the Value of Your Commercial Property in New Jersey

To make a commercial property investment work for you, it is necessary to
take some measures that would make it a sustainable income generating
asset that is worth holding. How to do this is not beyond your reach with the
Internet flooded with the latest market trends and strategies on how to step
up the revenues you can get from commercial buildings and lands.

Below are some strategies you could employ to augment your property’s worth
before a commercial appraisal or otherwise

Make it Eco-Friendly

The buzz in property circles is all about how green is the project. The more
you do to protect the world we live in, the better is the worthiness of your
premise for a commercial property appraisal.   Harnessing commercial
technologies like solar power, energy-efficient light bulbs, low flow
water-saving plumbing appliances, increased insulation, and the use of
recycled building materials for upgrades and renovations will besides
diminishing environmental impact reduce your overall expense. You will also
gain an advantage by way of accruing tax incentives from investing in green
technologies.

Show up a blank canvas

An intelligent step would be to present the space for sale without any trace of
the pre-existing business. So wipe the slate clear of any equipment and
furniture that pertained to the former business. Give the building a thorough
cleansing including the floors, walls, carpets, and window. This makeover will
show up the premise in all its worth. The potential buyer will now be able to
see the available square footage clearly without the clutter of furniture and
machines. Depending on what the space was initially for and your prospective
buyer’s needs, you can repurpose the premise as an additional office,
conference, storage, or warehouse space

Improve the Property

Beautifying the building and the entire property can add value before a
commercial real estate valuation or while selling the property. The
property could pertain to a shopping mall, office building, residential
apartment and industrial plant. Cleaning up the grounds and building is the
simplest and cheapest way to boost the implied value of the property.
Upgraded windows and doors will slice operational costs and utilities as well
as give off an upgraded and streamlined aesthetic appeal to a purchaser or
tenant. When you give your premise the aesthetic appeal that would please,
you can increase the rent you are currently charging the tenants.

Add Amenities

Adding amenities like a fitness center, high-end conference rooms, bigger
trade halls, an automated coffee bar, and other concierge services, and
complementing these with income-producing roof space for a large gathering,
automated laundry machines, and fully-furnished convention halls is bound
to boost the value of a commercial property.

Improve Structural Integrity

Sellers aiming to do away with an entire property can improve the structure
of the building before selling by carrying out repairs related to the frame of
the building the foundation, and the waterproof membrane or roofing for
leaks. The appraiser conducting a commercial real estate evaluation for this
property will take this up positively in his assessment.

Tenants pay their own utility costs

Using sub-metering devices to determine accurately each of your tenant’s
utility for water usage, electricity, and gas usage in the building or
apartments you can avoid paying any kind of excess. So consider installing
metering devices and start revising your collection process. Add to tenant
bills the utility usage of water, electricity etc.

Revisit Lease Contracts

This is applicable to borrowing money on the property. Instead of setting up a
one-year-only lease, extend it to 5-years or 10-years to maximize your
commercial property’s value. Improve your lease contracts with your existing
tenants, if possible.

The above ways are just smart to hike commercial property value in New
Jersey. Aim to maximize your property’s worth by implementing some of the
ideas.

4 ways to Increase the Value of Your Commercial Property

The value of a commercial property is determined by two crucial factors, one,  its historical data and second, its potential value to get in more revenue for you, drop your expenses and augment your overall equity and value of the asset

The point is, it is possible to raise the value of the bought property by implementing certain changes around it.

Here are 6 ways to enhance the value of commercial property

Better the property

Improve the value of your commercial appraisal by making cosmetic changes to it or substantial rehabilitation changes, and by amenities. Cosmetic applications include painting, new decor to common elements, new flooring, can enhance your property’s value. Substantial rehabilitation changes are bigger and involve transforming the structural facade or renovations to the common lobby of a large office building etc. Amenities can be anything from parking lots to child care. For example, if you do have a parking lot, improve on it by implementing security measures like alarm systems, gates, or security guards to attract new tenants. And if one doesn’t exist add one nearby your property for your tenants. Make your property more appealing and valuable: create a playground in a multifamily property or add free wireless internet for your retail tenants. Or you can include more extravagant amenities like a daycare center in your office building or an outdoor courtyard in a hotel property. Go eco-friendly. It is a high initial investment in the beginning, it is cost-effective later on. Solar panels, tinted windows, energy efficient appliances, and other green improvements. Not only will electric and other utility costs drop, but you will receive appreciative tax breaks from the  state and federal government.  

By bettering the property you increase its value for tenants and for your own portfolio. So when scouting for commercial properties, think about strategies you can employ to make the property more valuable. Know your property’s potential before you close the deal. The best deals are made when you buy a property, not when you sell it.

Raise the Rent

Another way to improve on the value of your commercial property is to increase the rent after checking on historical data of the property to find out if tenants are paying market rent or lower than the average rental rate. If lower than market rate, there is scope for increasing the rate of rent. This can be justified by the improvements made to the property.

Cut down spending

Evaluate the historical operating statements of the property to determine if there are areas where you can decrease the expenses. More energy-efficient light bulbs in the common areas will radically cut your monthly electrical bills. Where gas is concerned the gas company can individually meter the units which will enable the gas expense to be passed on to tenants, instead of you bearing this recurring expense.

Transform the value of the property by repurposing it

Sometimes if you seek a zonal variance to convert a commercial real estate for another purpose, it can drastically transform the value of the property. For instance, a run-down industrial area can be converted into a massive upmarket shopping mall - the value of the property increases with its lucrative potency.

Boosting the value of your commercial property may seem like an insurmountable task. But it can be super profitable. By increasing rent, decreasing costs, and making necessary repairs, you can easily add value to your property.

RD Clifford Associates for your commercial real estate appraisals

Since 1990, RD Clifford Associates has been a leader in commercial property valuation in New York, New Jersey, and Pennsylvania. They are experienced in valuing commercial properties of all sizes and for all purposes. You can rely upon their detailed reports to provide you with all relevant information and an accurate valuation.

5 Reasons Why You Need a Personal Property Appraiser

Engaging the services of a New Jersey property appraiser cam help you protect your investments and ultimately, your financial wellbeing. Valuation professionals can provide you with an independent, impartial analysis of your personal property, business, or real estate. Appraisals can be informal as performed by a qualified real estate agent; however, mortgage guarantors and lenders usually require a formal appraiser by a professional New York property appraiser when financing a purchase.

A property appraisal is different from a mere home inspection. While a home inspection only outlines the condition of different aspects of the property—ranging from its structures to its grounds, utilities, and its sidewalks—a property appraisal provides a more in-depth investigation along with an estimate of the property’s monetary value compared with similar properties in the market. Below are major reasons why you should consider a professional appraisal for your property:

• Buying/selling a home – Whether you are selling or buying a home, a professional appraisal is a valuable tool in determining the real value of the property in question. When selling a property, hiring a New York property appraiser will help you secure its value, which is an important step in figuring out a listing price. This is especially true for properties with unique attributes. Property valuation is also an important step when trying to purchase property. Lenders will want to make sure that the home you are buying is worth the amount of money they are lending. Hiring a personal property appraiser will help you verify the listed price of the property.

New Jersey property appraiser

• Refinancing – Property refinancing also calls for the services of a New Jersey property appraiser. Lending institutions require formal appraisal so as to ensure that the refinanced loan amount is justified by the property’s collateral value.
• Home Equity/Renovation Loans – Property values increase/depreciate overtime, which is why it is important to keep track of your own property’s value, especially when borrowing money for renovations or home equity.
• Estate/Legal Purposes – Property appraisals are also critical when transferring wealth and estate from one family member or one generation to another. The current market value of the property eases division of assets as of the date of transfer.
• Tax Assessment – Finally, you may want to hire a professional New York property appraiser to help determine property tax levy when evaluating your property assessment notice. Discrepancies between your assessment notice and personal valuation may entitle you to a tax appeal.

Getting a Real Estate Appraisal During a Divorce

A divorce—whether friendly or hostile—can mean a lot of work in terms of dividing assets between parties, especially when a prenuptial agreement is off the table. A real estate appraisal is the best way to find out exactly what your share of your family residence and other properties will amount to. Professional real estate appraisers can determine the market value of your property, whether it be a residential estate or any other type of real property you wish to divide with your ex-spouse.

In most cases, divorce attorneys can refer you to reputable real estate appraisal firms that offer expert property valuation services. These are firms that offer unbiased and well-studied appraisal of your property and will report on your behalf. It is often a wiser choice to get appraiser recommendations from your divorce lawyer (or lawyers, if both parties retain separate attorneys) to avoid problems and conflicts down the line.

Unless each divorcing party requests a separate appraisal for the property in question, the real estate appraisers fee is usually paid for by both. This amount is typically split down the middle and shared by the opposing parties. This said, appraisers may collect fees in varying ways. In some cases, they bill the lawyer that retains them on the divorcing parties’ behalf, and in some cases, they collect directly from the spouse staying in the home as they do the appraisal. Making prior arrangements and knowing your payment options is advised so you know what to expect.

Like any other real estate appraisal, a divorce-triggered property valuation begins with a property visit, during which the appraiser will ask questions about the house, ranging from the history of the property to some structural problems or concerns. Real estate appraisers also typically take measurements and do thorough inspections of every nook and cranny to check for features and conditions that may raise or decrease the value of the property in question.

Following the physical visit of the property, appraisers do a market research of similar properties, usually within the surrounding vicinity. Sale prices of similar homes sold within the last few months usually affect the market value of an appraised home. Appraisers also use standardized templates that detail itemized comparisons between your home and other houses that are of similar or close enough value. Only after a definitive analysis of comparable homes can professional real estate appraisers make a justified valuation of the property in question.