Page 80 - Selling secrets 5 18 2023
P. 80
An appraisal helps in various decision points. The seller can
use the appraisal as a basis for pricing. The buyer can use it
as the basis for an offer. Lenders use appraisals to know how
much money to credit to their borrowers.
The most important factors in a house appraisal are:
« dwelling type (e.g., one-story, two-story, split-level,
factory-built)
« features (including design); materials used and the
type of structure present and how they were built
« improvements made
« comparable sales
« location—type of neighborhood, zoning areas,
proximity to other establishments
« age of property
« size
« depreciation
Condition, of course, is a crucial factor in valuation.
Location is also a factor, but as property can’t change
location, it’s often upgrades or improvements to a
residential property that can enhance its value.
A professional appraiser should be a qualified, disinterested
specialist in real estate appraisals with expertise in your
region. Their job is to determine an estimated value by
examining the property, looking at the original purchase
price, and comparing it with recent sales of similar
properties. The fee for this service is usually between $300
and $500.
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