Schedule your Home Valuation with RE/MAX of Hot Springs Village, call 501-922-3777.
Determining the value of a home or a piece of property may be more complex than you expected. Although real estate agents can give you a rough estimate, do not be surprised if a property appraisal does not match the valuation report. In fact, in some cases, the price quote can be thousands of dollars higher than the definitive value of the property. That is because valuation is not the same thing as property appraisal. A property valuation, offered as a free service by the real estate agency, is an estimate of the value of the property based on the agent’s knowledge of the area and familiarity with the local market. It takes into consideration recent sales data and the prices of similar properties in the local area. Since it is not a formal assessment of the property’s worth, this quote should not be taken as an actual real estate value, but it can give you an idea of how much the property would sell for in the current market, as well as what the return on investment and profit margin might be.
Put simply, a valuation serves as a pricing guide but has no legal standing; an appraisal provides a definitive value that can be used for legal matters. A property appraisal determines the exact price or value of the property through a formal process. The valuer must have the training and education in the field to provide a qualified assessment based on the property’s features. Features include location, physical attributes and other features, the building structure and condition, accessibility (public transport, parking, etc.), local council zoning, special features such as fittings, building plans and limitations, and structural faults and caveats on the property. A fee is charged for the appraisal, which comes with a written report that discusses in detail how and why the property value was derived. Banks and other lending institutions often require a property appraisal when approving loans for property purchases or for refinancing. Appraisals are also useful for asset accounting and management, resolving legal issues, or establishing the value of a deceased’s estate.
Schedule your Home Valuation with RE/MAX of Hot Springs Village, call 501-922-3777.