subject: Real Estate Appraisal | The Best Way To Determine Home Value [print this page] Real Estate Appraisal | The Best Way To Determine Home Value
As either a home buyer or a seller, you most likely realize that finding out the value of the home can be quite involved. Both the buyer and the seller must think long and hard about the price that they are willing to discuss in regards to a property. Both an assessment and an appraisal offer ways for interested parties to decide the true value of the property in question. Both, however, differ in quite a few ways. Here are a few of them.
An assessment is a way to determine the average value of the property in general terms. It is most often used by the county or municipality to determine the value in order to decide what property taxes are needed. The information used is found in publically available records, things that anyone can get with a little time and effort. You should be cautious though. The information used may be out of date, or not reflect the true nature of the property. Plus, assessments are usually done every few years, meaning the last one may not have the most current information. They do offer a way to get the basic information to start from.
On the flip side, an appraisal is a much different animal. The appraisal is distinguished from the assessment by the level of complexity and detail provided. It is often undertaken by a trained professional, an appraiser, who has years of training and experience to draw from. The appraiser has the skill to deliver a more meticulous view of the property in question, including drawings, photographs and a comprehensive narrative of the observed specifications. Also, an appraisal can be requested at any time, and is most often used during a real estate transaction to assist verify the actual condition, and therefore value of the property.
As a buyer, you may be obliged to offer an appraisal as evidence of the value of your proposed purchase. An appraisal is often used as a tool by the financial institution to determine if the property is worth the risk of financial loss if the buyer cannot meet his obligations in the future. An appraisal is also a way for the seller to decide a reasonable asking price, and therefore help to prevent the added headache of a lengthy price negotiation process. In the end, both these techniques offer ways to assist you determine the overall value of the property. The assessment can give you an overall view, and the appraisal provides a more current, detailed picture of the property condition.
