An Appraisal: What’s my Investment Property Worth?
An Appraisal, or assessment, or opinion, is a snapshot in time. Usually valid for 30 days once the appraisal report is received. It tells you what the investment property that you own or that you are interested in purchasing is worth. And mainly it lets you know what a bank is willing to loan for a refinance or purchase.
Current factors used in these assessments include comparable sales: similar properties-square footage, number of stories, lot size, number of bedrooms, baths, etc.
For Buyers, the current market conditions are a plus. With the number of foreclosures, short sales, anxious sellers, large number of properties for sale, and a slow market, there is a downward pressure on the market price for any property — all of this equals a Buyer’s Market.
For Sellers, it’s a much more complicated issue. For sellers who are current with their property’s mortgage, all the benefits listed above for buyers are the exact opposite for sellers. Today’s real estate market is a Tough Market. One word of advice in a Buyer’s market: “If you can wait to sell – WAIT”–that is, if you want to realize some Appreciation benefit from owning the property. But a property that you, the seller, have realized some income, depreciation and principal reduction benefits may be able to sell at the current market price. Enlisting a knowledgeable real estate professional can give you an idea of what your property is worth by using statistics from their MLS (mutiple listing service). This report is not as extensive as a professionally done uniform appraisal report but, will help in pricing the property for sale.
In the end, a property’s is worth is determined by what the seller is willing to accept and what a buyer is willing to pay. The assessment or opinion really indicates what the bank is willing to loan.
