In the past few decades we have seen a drastic growth in many housing markets globally. This means that there is a growth in interest of developing real estate properties – both commercial and residential, as forms of long-term investment and that there is a real demand for it due to a high take-up rate by consumers. Although there is a shift in owning single detached homes to high-end and/or luxury condominium units, it can not be denied that the demand for the purchase of real estate properties exist and it is still continuing. Statistics show that there is now a varied mix of home buyers ranging from baby-boomers to millenials causing this shift where the new “ideal” life-style is living in city centers. Methods of Valuation
The most tricky of the steps in purchasing a home is making sure you get the right current market value. Let’s understand how they come up with the price. There is a variety of methods on how to obtain a Broker Price Opinion about the market value of a real estate property which includes the following, 1. Sales Comparison is very well known for fast valuations because it utilizes the sales comparison approach which is a method that compares the property on sale to other similar properties that have already been sold. 2. The Drive-thru requires a visit by an appraiser but will not require the ocular inspection of the inside of the property. 3. The last, although more time consuming, is the best and most accurate source of valuation which is the vision appraisal. In vision appraisal, the appraiser visits the property and checks both the outside and the inside of the property.
Here are 5 things you need to know about vision appraisal and how it is advantageous for both the buyer and the seller,
1. Buyer It takes into account the actual age and the condition of the home and its parts. It does not follow the price of “comparables” which are similar properties that have recently been sold. The variance in price could be huge.
2. Buyer It identifies the areas that will require repair that allows the buyer to negotiate for the price to be reduced resulting to savings.
3. Seller It is the best method in obtaining property valuation especially if your area is stricken by foreclosure sales and/or poorly maintained homes which lowers the value of the property. Vision appraisal makes the valuation more resistant to other considerations in the neighborhood where the property is built.
4. Seller If you are short-selling your home and your bank would not agree with you on a lower selling price, a vision appraisal is a good way to put this issue to bed and make the sale possible.
5. Buyer and Seller, It fosters fairness to all involved in the purchase of a home. We must understand that for the majority of those in the middle-class they will soon become – if not already have been involved in the buying and/or selling of real estate properties. This is an indispensable fact since we are hardwired to follow a strict plan in our life cycle.
So if you are planning to buy your first home, as you have learned here, be smart when making the biggest financial decision in your life. Consider the advice that we clipped here for you. You won’t regret it