Establishing the value of real estate is essential for an informed and unbiased approach to property transactions. Because properties may have a variety of available uses, or may change in quality due to deterioration or improvements, or because the district where the property is located has changed over the years, the value of a particular property needs to be re-appraised periodically, for both tax purposes and insurance needs. Some situations call for more immediate appraisals such as mortgages, property sales, divorces, and the settling of estates. A licensed and certified real estate appraiser has the expertise and the impartiality to provide a fair and competent evaluation of residential properties that can be trusted by all parties involved. Prior to commencing, the appraiser will establish with the client(s) the “scope of work” for the results required. These will include: client or clients involved, the intended use of the report, the definition of value, i.e., market value, mortgage or investment, any hypothetical situations, the expiration of the value determined, and any remarkable aspects of the property. The appraiser combines the value of the parcel with the replacement cost of the building, less any obvious deterioration. He may also take into account the value of similar buildings in the area, comparing size, materials, utilities and functions. Additionally, he may access recent sales records of comparable properties for value comparison. Beyond these considerations, the appraiser determines the “highest and best use” of the property based on legal restrictions, physical possibilities and financial feasibility. His conclusions and “bottom line” value will usually be provided in a written report to the clients.
Unlike other business matters, transactions of specific properties are less frequent and values can change dramatically from year to year, from sale to sale, making a re-evaluation of the property not only good business sense, but also a protection against financial loss in a sale or a catastrophe.
At Gary Pick Residential Real Estate Appraisals, I understand your concerns with purchasing a new home. I understand that buying or selling a home can be a daunting process. As a certified professional, I hope that my evaluation will help to quell your fears and to streamline the transaction process, settling you into a home that will provide years of comfort.