Appraising Property can be done three ways:
- Cost Approach
- Income Approach and
- Comparable sales.
The latter is used in most residential appraisals. As I Realtor for well over 30 years, I always feel that there is no exact number, but rather a range to determine price, or value.
If I had three different appraisers come out to a property, they usually come up with three different values. However, each appraisal will all fall into my range.
The Buyer will actually determine the real value when they make an offer. But there are other things in an offer that can make that sales price vary, such as a Home Warranty, Closing Costs, HOA Fees, GVR Fees, etc. Depending upon who pays these fees can alter the sales price—kind of like trading dollars.
So when buying or selling a home in the future, remember the factors that go into an appraisal and a home’s value.
Stu Samovitz is a realtor with Home Smart Pros with more than 30 years of experience. If you need assistance with valuing your home, or deciding if it’s better to buy, sell or not, contact Stu at:
Stu Samovitz, Home Smart Pros