Real Estate terminology
Hi,
We are always thinking of including information on our blog that will be helpful to you our clients and anyone just looking for real estate info. Today we will begin a new item, call the word for the day. We will provide a general term or two with a definition and maybe some additional comments. We realize that many of these seem to be obvious, but we don't want to leave anyone out. If there is a specific real estate term you aren't sure about and would like defined, please let us know.
Today's words:
Appraisal - An opinion of value based upon of factual analysis
Appraisal Methods - Generally, there are three major methods - Cost approach, Income approach, Market Value (comparables) approach.
Residential real estate is generally appraised using the Market Value approach. Appraisers will collect data about comparable recent sales in a neighborhood or area, and use these to come up with an appraised value. Appraisers will look for similar floorplans in a neighborhood or if there aren't any, use homes that are close in square footage. From there they will add or subtract value for special features such as lot size, pools, fireplaces, upgraded flooring and more, as well as condition of the home and surroundings. There is more to it than this, but this hopefully will give you a good idea as to how it works.
If you are considering selling your home, we can give you an idea of what it is worth as well. As Realtors, we have experience with the market that will help you decide what price to market your home at. The biggest issue we see in this market is overpriced homes. Keep in mind that even if you are fortunate to get the price you asked for, if it is overpriced for the market, it may not appraise, and that is a story for another day. Feel free to contact us for a free market evaluation.
We hope you appreciate the information that we provide and find it useful. Have a great week.
Adam Tarr, ePro
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
480-483-3333
info@WeAreAZRealEstate.com