How to appraise a property? Knowing how much your property is worth at the moment is very important and for this you need to appraise your property. In Villasbroker we’ll talk to you about how can you appraise your property and why you must do this, so keep reading.
How to Appraise A Property For Sale: Things To Take Into Account
It doesn’t matter if you want to rent, sell or if you simply want to know how much your house costs, in all of these scenarios you must make a commercial appraisal.
This is, basically, setting a value to a property; but it won’t be the value you want or the amount you paid for the property. When you appraise a property for sale, a lot of factors must be taken into account to stablish a commercial appraise correctly. This way you’ll know you property’s maximum value.
Why To Appraise A Property?
This procedure is used to determine the real value of an asset at a determined time; in this case a piece of real estate.
It’s worth mentioning that the real value of a property makes reference to the price that it has inside the just relation of offer and demand.
How To Appraise A Property: Nominal Price
While the nominal price is the one that the owner sets to the property when it’s going to be sold and can be negotiable.
This is an important process, since it’s very necessary to know for how much is your property appraised. For example, in some countries depending on the value of a property a certain amount of tax is stablished.
And in other countries, you can ask for a bank loan setting up the property as a warranty and the amount of the loan will depend on the value of the property as well.
Who Appraises The Property?
Commercial appraisals are made by an expert. The expert can be hired by a company, bank or even by yourself if you know any –or if you’re recommended a professional-.
This person takes into account the different physical and topographical characteristics of the property. Afterwards, he will realize an appraisal depending on the state in which each of this characteristics are currently in.
The best thing we can recommend is that you hire a specialized professional for these kinds of inspections and make sure they have great knowledge of the current market.
How Often Should You Appraise A Property?
Since the real estate market is changing constantly, these kinds of appraisals should be made approximately every 6 months or once a year.
What’s Taken Into Account When Appraising A Property?
Find out up next what must be taken into account to appraise a property:
The location is extremely important for the appraisal. Since a study of the characteristics of the area in which the property is located is made; how close it is to commercial areas; prominent activities; what security does the general area offer; types of buildings; zone demands and more. All of this will help determine the value of the property.
The general conditions of the terrain is also included in this appraisal. Different things are considered such as the flatness of the terrain, terrain relief, its inclination and its general topography; another aspect to consider is the geometrical location concerning the living area where it’s located and the conditions of said area.
Condition Of The Property’s Structure
The condition of the property’s structure is an important factor when we determine the value of said property.
For example: Even though two properties have similar characteristics and are located on the same area and have other similarities, if one of the two is in a terrible state (with leaks, cracks, bad paint job and more) it will never cost more than the similar property that is well taken care of.
Do you want to appraise a building? In this case, the professional must take into account the buildings structure to make an appraisal of the property.
Property owners also undergo an inspection, where the properties titles, permits and urban rulings are evaluated, among others.
Were you wondering how to appraise a property? We hope you like this information we’ve brought for you today 🙂
- 1 How to Appraise A Property For Sale: Things To Take Into Account
- 1.1 Why To Appraise A Property?
- 1.2 Who Appraises The Property?
- 1.3 How Often Should You Appraise A Property?
- 1.4 What’s Taken Into Account When Appraising A Property?