- Purpose: A real estate appraisal is a professional assessment of the market value of a property.
- Comparables: The process of determining the value of a property by comparing it to similar properties that have recently sold in the same area is called “comparable sales”.
- Factors considered: The appraiser will consider factors such as the property’s size, location, age, condition, and features, as well as the local real estate market conditions and trends.
- Importance of accurate data: Accurate data and correct analysis of comparable properties is critical in determining a property’s value, and mistakes can lead to inaccurate appraisals.
- Uses: Appraisals are commonly used in real estate transactions, such as when a lender requires an appraisal to approve a mortgage loan or when a property is being bought or sold.
- Limitations: Appraisals are based on the appraiser’s opinion and may not reflect the actual market value of a property. It’s important to keep in mind that an appraisal is not a guarantee of value.
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