Real Estate Appraisal

Real Estate (Real Estate Appraisal) Appraisal – Do Your Own

For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales. A third appraisal method, based on capitalization, is used for income properties, and is covered in another article.

In figuring replacement cost the question is: What would it cost to buy this land and put this house on it? If the land (improved) would cost $40,000, and the house could be built for $150,000, the value indicated would be around $190,000 – if the house is fairly new. If it has used up 10% of its useful life, you can deduct $15,000 for depreciation.

Replacement cost is not really a very useful measurement. It is difficult to say what the land is worth in a city center where none is left for sale, for example, and tough to gauge depreciation. It is used as a secondary method, and for unique homes that can’t be compared easily with others. The primary method of real estate appraisal used for homes is a market analysis using comparable sales.

Real Estate Appraisal 101

To get a good idea of what a home should sell for, you need to compare it to homes that have sold. Find at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This information is available in the county records, or from a real estate agent with access to the MLS (multiple listing service).

Now the confusing part. You start with the selling price of each of your comparables. If your subject home has a second bathroom, and the a comparable doesn’t, you add the value of the bathroom to the sales price of the comparable. If a comparable home has a blacktop driveway, and the subject home doesn’t, you take the value away.

You are rectifying differences, to see what comparable homes would have sold for if they were like yours. So if a comparable sold for $140,000, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), you ADD $15,000 for the bathroom it doesn’t have. Then you subtract, say $4,000, for the paved driveway it does have. This gives you a comparable sales price of $151,000.

You do this with all differences between the subject home and each comparable. When done, you average the three comparable prices. So if the three comparables have adjusted sales prices of $151,000, 162,000, and 149,000, you add the three figures and divide by three. The indicated value of the home is $154,000.

Of course all appraisal is an inexact science. If you can only find comparables sold over a year ago, you have to estimate appreciation in the area. If one sold with seller financing, you have to decide how this affected the price. For all of it’s flaws, however, for single family homes, this is the most accurate method of real estate appraisal.

About the author:
Steve Gillman has invested in real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Most find appraisal system to be flawed (Real Estate Appraisal)

Most find appraisal system to be flawed
Brazoria Facts – R-Houston, has introduced legislation that would allow local taxing entities to set their own appraisal cap to be applied to their tax rate because they would better understand the local real estate markets. The central agreement for doing it is

Introduction to Real Estate (Real Estate Appraisal) Appraisal

Introduction to Real Estate Appraisal This video program is an introduction to Real Estate Appraisal, as taught by Mr. William B. Mansfield, a former real estate appraiser who has been lecturing on various real estate subjects for the past 15 years. In addition to teaching at numerous colleges and for the Learning Annex, he also conducts complete education courses at Jumpstart Seminars in Southern California.

The main purpose of this particular program is to give the viewer an introduction to a very lucrative career in Real Estate Appraisal, showing the basic principles that are involved in the actual practice, the types of education and experience required for licensing, the amounts of money that can be earned and how to develop a client base to build a fulfilling career that affords one not only the luxury of the earnings that can be achieved, but also the time that can be enjoyed by selective scheduling of appointments. Also included in this introduction are the names and websites of numerous organizations that provide books, products, licensing, software and other helpful products for the professional real estate appraiser.

Any person interested in investing in real estate will also find this course extremely useful in determining a property’s value. Additional information has been added for viewers in all 50 United States.

#TITLE#Anti Monopoly#/TITLE#

Anti Monopoly

Search By Advertiser (Real Estate Appraisal)

Search By Advertiser
1960 Sun – AUTO TECH BENSI ITALIAN RESTAURANT BERNARDS APPRAISAL ASSOCIATION CHILD CARE CHILD CARE COMMERCIAL REAL ESTATE MORTGAGE COMPUTER Send us your community news, events, letters to the editor and other