Thursday, October 9, 2014

How Can Real Estate Appraisal Affect the Value of Your Home for Sale?

In Tampa, there are so many properties that are up for grabs. However, sellers of properties have to make sure that they get the right amount of money for the property for sale they are giving up. They can’t simply just say a price. The property has to undergo appraisal first.

What is a real estate appraisal? It is a report based on the inspection of home regarding its value. It is an estimate based on the opinion of the appraiser.

There are three ways to do a property for sale appraisal in Tampa. The first is the cost approach, where in the appraiser will evaluate the property based on cost of renovations and improvements and deducts depreciation then adds land value. The second is sales comparison approach which is comparing nearby houses for their values. This is the most used approach since it usually indicates the market value of the property. The last is the Income approach, in which the appraiser will make an estimate based on how much an investor would pay based on how much money the property would earn him.

A real estate appraisal will hugely depend on the appraiser himself. While it is based on his opinion, he should still be able to back his estimate up with substantiated assessment and objectivity. Appraisers will make an appraisal report for the Tampa property for sale and indicate how he came up with the value.

Appraisals are highly important for people who’d finance the property through mortgage. The lender needs the appraisal report to help decide if it’s worth financing. However, there are plenty of other reasons why you’d want a real estate appraisal for your Tampa property for sale.

For one, it helps determine your tax obligations and fight high taxes. It can also help the property owner determine the real value of his home in the real estate market. This also goes the same for a buyer who wants to know if he is buying the property at the right value.

Nevertheless, don’t confuse a real estate appraisal from a home inspection. A home inspection investigates the home. It will check the house’s condition, structure and basically, every physical thing about the home itself including the HVAC system, plumbing, electrical systems, walls, ceilings, insulation and etc. An appraiser doesn’t do this. A home inspector doesn’t give an opinion of value for the property.

Tam Bay Realty LLC
1408 N West Shore Blvd Suite 1000 Tampa, FL 33607
 (813) 908-0706

No comments:

Post a Comment