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Real estate appraisal is that the real one?
Real estate appraisal or property valuation is the method of determining the value of the property on the basis of the highest and the greatest use of real property (which generally translates into determining the fair market value of the property). The person who performs this real estate assessment exercise is known as the real estate appraiser or property valuation surveyor. The value as dependant on real estate assessment may be the fair market value. The real estate appraisal is performed using various techniques and the real estate appraisal values the home as different for difference purposes e.g. the real estate appraisal might assign 2 different values to the same property (Improved value and bare value) and again the same/similar property might be given different values in a residential zone and an industrial zone. But, the value given as a result of real estate appraisal mightn't be the value when assessing the home for investment a real estate investor would consider. In fact, a real estate investor may completely disregard the value that comes out of real estate appraisal process.
An excellent real estate investor would assess the home on the basis of the improvements going on in your community. Therefore real estate appraisal as performed by a real estate investor could produce the value that the real estate investor will get out of the home by getting it at a price and selling it at a much higher price (as in the present). Likewise, real estate investor could do their own real estate appraisal for the expected value of the home in, say 2 years time or in 5 years time. Again, a estate investor might perform his real estate assessment based on what value he/she can cause by trading some amount of cash in the property i.e. a estate investor might decide on purchasing a dirty/scary sort of property (which nobody likes) and get some slight repairs, painting etc done in order to increase the value of the property (the value that the real estate investor would get by selling it in the market). Therefore, here the meaning of real estate appraisal changes completely (and can be very different from the price that real estate appraiser would come out with the property) on if the real estate appraiser conducted a estate appraisal exercise.
A real estate investor will generally base his financial commitment with this real estate appraisal that he does by himself (or gets completed through someone). Therefore, could we then term real estate appraisal as an extremely real real estate appraisal? company web site
