Property appraisals are an extremely valuable source of understanding and assessing a property’s value. They’re a necessary tool for property valuation at the time of buying and selling real estate. But that’s not all they do. Property appraisals also come in handy when you might need to:
- Challenge soaring taxes
- Finalize or proceed through a divorce
- At the time of inheritance
- Negotiate when selling your property
- Refinance by applying for a mortgage
- For right protection
All in all, the best Realtors in Satellite Beach, FL, strongly recommend property buyers in Riverfront, VolusiaCounty, Brevard county, Viera stay on top of property appraisals and their outcomes.
In this detailed post, you will learn all about the meaning, importance, and methods of property appraisals as practiced in the US.
What Does a Real Estate Appraisal Entail?
Property appraisals are a document containing a true estimate of a property’s value. It is calculated on a property’s Fair Market Value, AKA the current price. Qualified and certified appraisers perform property appraisals.
However, you can also consult with your Realtor in Florida and inquire about the process. Companies like Realty World Curri Properties not only offer highly reliable realty services and real estate listings but also exceed clients’ expectations with excellent property management services. Always remember that a property appraisal is an unbiased assessment, and you should always report to Consumer Financial Protection Bureau (CFPB) or the US Department of Housing and Urban Development (HUD) if you think you’ve been discriminated.
As a leading and highly experienced residential and commercial real estate agency in Brevard County, Realty World Curri Properties can help you push back if your property has been intentionally devalued. They can also help you find the best home listings across Florida.
How is a Property Appraisal Conducted?
Now, you must be wondering about the steps involved in a property appraisal. Typically, three different property appraisal methods are used in the US. Each of them allows Realtors and property owners to establish concrete property value at the time of buying, selling, and settling real estate.
The three property appraisal methods are:
1. Sales Approach
Known as the sales approach, the first, most common type of property appraisal technique is used to assess a property’s value based on the “recently sold” data. Appraisal districts tend to analyze the properties that have been recently sold in the area and their values.
In short, it’s a comparative method that allows appraisers to determine a property’s worth relative to similar real estate units.
2. Income Approach
An income-producing property such as a multifamily building is most likely to be appraised using the income approach. A property appraiser will determine your property’s value by assessing the expenses and income. Maintenance costs, operating expenses, and profit on the property play a key role in this kind of appraisal.
Some other types of income-producing properties may include owner-occupied rentals, turnkey properties, etc. The income approach is often combined with the other two property appraisal methods.
Cost Approach
Property appraisals conducted on the basis of the cost required to build a particular property are called cost-based appraisals. Your property appraiser will determine all the cost factors involved in establishing a similar structure to your unit. This method also considers depreciation, which refers to the total value lost since the time of building completion.
Who Owns the Appraisal?
A property appraisal’s ownership is in the hands of the property owner. That’s exactly why it’s important for real estate buyers to inquire about recent appraisals. They should also verify the documents and ensure that all value determinants are in line with the property’s current situation.
What’s more, property appraisal owners can disagree with an appraisal outcome if they think that it’s inaccurate. To contest the report, they have to file a notice within thirty days at the Value Adjustment Board (VAB). This board is responsible for resolving disputes between taxpayers and the Appraisal District.
What Does a Property Appraisal Report Contain?
Appraisals are equally valuable to real estate buyers, sellers, and brokers. In a typical property appraisal report, you’ll find the following factors determined by the appraiser:
- The exterior, interior, and overall condition of your property
- All the amenities offered inside a property. This may include recently updated features, hobby amenities like swimming pools and gyms, and the quality of its overall structure
- Complete and accurate estimation of your property’s Gross Living Area (GLA)in square footage
- Separately documented details and values of living and non-living areas such as porch and garages
- A property appraisal report also contains clear images of a property’s front, back, sides, and street-front
- Other pertinent records documented in an appraisal include landlord information, tax details, any pending litigation, settlements, etc.
A Primer on the Importance of Property Appraisals
A property appraisal not only protects one’s real estate investment but also:
- Helps sellers sell their real estate units at the best possible price
- Helps buyers in ensuring that they don’t buy a property at a price more than its worth
Property appraisals keep real estate values within limits and prevent them from becoming unfeasible. As a landlord, you will need your property appraised for additional funding or refinancing.
So, for example, if your property appraisal comes in better than before, you’re more likely to get a loan based on the appraised amount. Property appraisals come in very handy at the time of selling properties as it helps sellers negotiate with substantial backing.
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About the Author
The author of this post is an experienced real estate property appraiser currently associated with Realty World Curri Properties in Satellite Beach, FL. He uses his far-reaching experience in appraising residential and commercial buildings to help the company’s clients understand all about property appraisals and their importance.
