What is property valuation?

06.09.2010 13:49
What is property valuation? Largest investment you ever made - is to buy real estate. No matter what it is - giving or the place of your residence. To carry out this complicated financial procedures, like buying real estate, it is necessary to take into account all details of this action.

Assessment of the property - is to determine the market value of a property. A professional evaluation is needed in terms of market failure mechanism for the formation of prices. Evaluate real estate appraiser can be made only with a special license.

There is no one type of value in assessing real estate. Most of them are involved:
market value;
the cost of insurance of immovable property;
Investment cost - the cost attributable to a single investor;
cost of use.

In the process of evaluating the real estate there is the mass of the nuances of which are very well aware of the evaluators. The most important member of the real estate transaction is a realtor. Funding for this process is controlled by a mortgage company. These companies are the guarantors of all of the operations for the transfer of property from the owner to its buyer.

From examination of real estate begins comprehensive assessment. An appraiser must carefully check all in order to definitively determine the value of the property. Number of rooms, bathrooms, their mutual arrangement, engagement under which an object (a hostel, office or warehouse) - all this characterizes the apartment. This same feature must necessarily define the person conducting the assessment. An integral element of the assessment is to identify the various defects that may eventually affect the overall cost of real estate.
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Based on the information that was obtained by three approaches, a person produces an assessment should determine the market price of the apartment or any other real estate. The amount determined by the appraiser is not final, but it can be taken into consideration as a factor in the cost of housing. This amount is mainly used for lending. Typically, mortgage companies give exactly that amount, because their interests do not include payment of the money more than the cost of real estate.
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