Real estate appraisal refers to the opinion on the value of a real estate property by an appraiser. Each real estate property is unique and hence it is prudent for any buyer to seek the services of a real estate appraiser to give them an opinion of the property’s value before entering into any sale-buy agreement with the owner. It can be frustrating to enter into a buy contract and pay some deposit on some deposit on for a Orinda real estate appraisal to tell you that the value of the property is less than what you had agreed to offer on the property and this can cause the bank to decline granting you a mortgage.
Unlike other properties that are traded frequently, transactions pertaining to real estate are infrequent and hence their prices vary a great deal. There are numerous factors that might impact the price of real estate property. Some of the factors are unique to each property while others are same across most properties. These variables include; location, neighborhood, market, age, condition, amongst others.
To most people, the property’s location is the most important factor when buying real estate property. Location does not necessarily mean the actual location where the property is situated but is dependent on other micro-factors such as proximity to various amenities, such as schools, social halls, shopping malls, among others. Properties located in places which have access to various social amenities are appraised higher than those situated far away from such amenities. For instance, properties located in places with access to quality schools attract many high-caliber buyers with school going children and this will increase demand for such properties thus essentially leading to higher prices. Properties located in places accessible to local employment opportunities are also rated higher in value.
The surrounding neighborhood also plays an integral role in determining the value of any real property. If the property is located in wealthy neighborhoods, then its value may be greater. Also the demand of estate property will determine its value. If there are lots of prospective buyers interested in any specific real estate, then it may attract higher prices as compared to those with few prospective buyers. In Moraga real estate appraisal, there are various sorts of value that an appraiser appears at. These include; value in use, market value, investment value, liquidation value and insurable value.
Market value off real estate property is the price at which such property can trade at a competitive real estate market. In simple terms, market value is the estimated amount a liability or asset can be exchanged on a particular valuation date between a willing seller and willing buyer. Value in use on the other hand is the amount of money a real property can generate for the owner for a particular use. Likewise, investment value is the worth of a property to a particular investor for a specific investment or use. Insurable value of a property denotes the quantity of money of the property covered by an insurance policy and doesn’t usually involve site value.