Why
Do I Need An Appraisal?
- The basic purpose of an appraisal is to help in making a real estate decision. An appraisal could be needed in any of the following situations:
- Setting a price for buying or selling.
- Setting collateral value for financing.
- Assisting in a refinancing decision.
- Determining just compensation in condemnation proceedings.
- Assisting in real estate and personal income tax matters.
- Setting rent schedules and lease provisions.
- Determining the feasibility of a project.
- Estimating the price for a corporation's purchase of a transferred employee's home.
- Assisting in insurance matters.
- Estimating liquidation value for forced sale or auction proceedings.
- Determining supply and demand trends in market.
What
Is Market Value?
Market
value is the most probable price for which the property should sell after
reasonable exposure in a competitive market with a willing and knowledgeable
buyer and seller and assuming a fair and normal sale with no undue pressure
upon either party.
Is There A
Difference Between Selling Price And Value?
Sometimes!
Every day some properties sell at a price which is above or below the normal
market value. A professional appraisal is an unbiased estimate of value which
includes an analysis of past and current sale prices.
How Does One
Determine Market Value?
Three
different methods are generally used in the appraisal process. A brief
description of each follows:
Cost approach: This method involves estimating
building cost and deducting for wear and tear, design flaws or location problems.
Land value is added to this building cost to derive a value estimate.
Sales comparison
approach: This
method is the most commonly utilized. This approach compares the subject
property with somewhat similar properties which have recently sold. Adjustments
for differences such as overall square footage, condition and location lead to
value indication.
Income approach: This method analyzes the value
of the property based on its ability to produce net rental income. The income
approach is seldom used in appraisals of single-family residences.
Does The Tax
Assessment Indicate Current Market Value?
Not
always. There is anywhere from a one to two year time lag between the
assessment work and publication of assessed value. Assessors appraise hundreds
or even thousands of properties in a year. They are not always able to inspect
the property and frequently can spend only a few minutes work on each
valuation. While many properties sell at a price above the assessed value, some
sell below the assessment.
Does Adding To Or
Renovating My Property Increase The Value?
In
most cases, when additions are made or renovations take place, the value will
increase. However, the cost of adding the item is not always equal to the value
that the item contributes to the total property value. It will depend on the
area, the market demand, quality of construction, workmanship, etc. Painting
and cosmetic repairs generally yield the greatest return on investment.
Do All
Property Values Rise At The Same Rate Every Year?
No.
There are no two properties and no two neighborhoods that are exactly alike. In
one neighborhood, sales may indicate a 15% rise in value in a year, while in
another neighborhood the rate of increase may be only 5%. Even within the same
neighborhood, different types of properties may show different increases. For
example, one-story houses may be more in demand than two-story houses. There
are many features to be considered in every property which cause the value to
differ. Some of the characteristics which can affect value are location,
condition, size, heating type, basement finish, fireplaces, porches, garages,
patios, etc.
How Long Is An
Appraisal Valid?
Supply
and demand and market conditions are constantly changing, causing value to
increase or decrease. In a fairly stable market, an appraisal should be valid
for 60 to 90 days.
How Can I Find A
Qualified Appraiser?
In
every profession there are individuals who are recognized as having greater
skills and higher abilities than others. In the field of appraising, these are
generally individuals who have had extensive training and experience, follow
the codes of professional ethics and standards of professional practice and
have received professional recognition for their abilities.
Reputation
and qualifications are important considerations in choosing an appraiser.
Recommendations may be obtained from chapter offices of the appraisal
institute, local realtors, and savings and loan and bank representatives.
What Can a Client
Expect from Our Firm?
RESPONSIVENESS
We
keep in touch during an analysis. We work with your deadlines. Conclusions are
reported to you verbally before the report is prepared.
DISCIPLINED
APPROACH
With
over 25 years of experience in the appraisal field in Puerto Rico, Florida and
other countries, we analyze the competitive environment, measure the property's
market position, forecast future potential, and apply analytical tools to solve
valuation problems. These analyses help assure that we provide you with
complete and well-supported conclusions.
CLIENT FOCUS
We
understand that every property is unique. Understanding your needs and the
requirements of the industry is a part of our professional service.
SOLUTIONS
Ours
is a professional staff, trained to stay in touch with the marketplace,
anticipate trends, recognize opportunities, and discover solutions. Extensive
knowledge and careful consideration are the basis for our solutions.
SERVICE
Our pledge of
service means that we will:
- Explain each factor in the analysis.
- Explore your data and reasoning.
- Inform you of our progress or any problems.
- Adhere to the Uniform Standards of Professional Appraisal Practice.
- Ask for your assessment of our performance through our Quality Survey.
CONTACT US!
Eng. Carlos Miranda, PE, MAI,
SRA, MRICS, CCIM, CMEA, CSBA
Real Estate Appraiser Machinery
& Equipment Appraiser
State-License Real Estate
Appraiser 643EPA
State-Certified General Real
Estate Appraiser 165CG
Tel: 787-399-1598
Email: ccimpr@gmail.com
Website: www.international-appraisers.com
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