Wednesday 12 July 2017

The Importance Of Accurate Estate Appraisals New York

By Maria Cole


Estate appraisal is a term used to refer to the opinion or estimate of the value of a particular property as of a specified date. The licensed real estate appraisers work within some stipulated guidelines provided in the law. You are supposed to be able to identify the state licensed real estate appraisers to be able to obtain legal Estate Appraisals New York.

The valuation reports are used by some people including the government, the insurance companies, the investor and the mortgage lenders. They are used to aid in making decisions concerning the transactions touching on the properties. The report is used to determine the selling price of these properties.

When the concerned expert gives wrong calculations, all the decisions made involving the property will be faulty. The wrong information may lead to serious losses to the parties dealing with the property in question.

An accurate appraisal depends on the method used. There are three main methods that are used in the determination of these appraisals. There is what is known as the sales comparison method. Here the appraiser uses the estimated value derived from making comparisons of this particular property with the recently sold similar properties.

The other method is known as the cost approach. It is a method used to estimate the value of the property that has been revalued by one or more buildings, here you should take into consideration the value of this land and the building separately. At the same time there should be consideration of the depreciation of that property. This approach uses the assumption that the buyer should not buy a property more than what it would cost by buying a plot and build a property that would be having the same desirability with the existing value.

The third method is the income capitalization method. The calculation is based on the relationship between the rate the investor expects and the net income that the property produces. This method is usually used in cases of apartments. This method is fairly straight forward when it can be predicted when the property will produce the next income and when the expenses can be predicted.

In essence, it is important to obtain an accurate real estate valuation. That is why it is important to ensure that skilled individuals do the valuation and the calculations are as stipulated in the law.The accurate records will be useful in the event of an issue that involves a legal suit.

You need to ask for the qualifications and make sure the expert meets the government stipulated qualifications. There are set guidelines when it comes to these experts. In every estate, there are some given qualifications for the people who do this job, and you should know whether your expertise is in the government list of these qualified appraisers. Those who are not in the list are likely to give inaccurate information. Wrong calculations affect some people including the insurer of this property, the buyer as well as the seller. All those who make any decision based on the particular property will be affected by the misguiding information.




About the Author:



No comments:

Post a Comment