What is it Worth?
When we decide to sell a car or some unused items around the house, we make some kind of judgment as to what we think it might be worth. We may base it on what we paid for it or what we saw one selling for down the street, but we are the ones making the determination. However, due to the fact that most real estate transactions involve securing a loan to complete the deal, a more precise and unbiased opinion of the value is normally required. The person who makes these decisions is known as an appraiser.
Appraisers are trained and certified and state licensed professionals that understand the significance of all the components that determine what a piece of property is worth - the residential or commercial appraisal. This price is known as the market value, and that is what most lenders use as the basis for the loan amount. They note the physical characteristics of the property such as lot size, building size, condition, and comparison to other similar properties. Other factors such as the strength or weakness of the real estate market in the area, and neighborhood in which the property is located. These and other factors enter in to the calculation of the current market value of the property.
Who do I Trust?
By now, if you are like me, your head is starting to spin trying to figure out what all this means. As a real estate buyer or seller, the most important thing is to understand the appraisal. Take the time to go over all of the factors and ask questions until you understand what you have. If you have reason to question the appraisal, ask for another appraiser. Your real estate professional or your mortgage broker can help you ""get a second opinion."" It may cost you more up front, but in the long run, it can be well worth the price - in peace of mind, if nothing else.
An understanding of the market in the surrounding area is key to the appraisal process. Identical property located in the Okanagan Valley of British Columbia would appraise different than one located in an area that is not as much of an attraction. Consequently, Okanagan appraisals would best be done by an appraiser who knew the area and the real estate environment. Likewise, a firm like Caruso Daniels, Inc., would be best suited to carry out Kelowna appraisals than someone who had not been in the area since 1978. While there are a lot of differences between residential appraisals and commercial appraisals, the same thing is true. When it comes to knowing what property is worth, it is best to deal with people who know the area.
When you are buying or selling property, you have enough to worry about without being concerned about the accuracy of your appraisals. Deal with a local appraiser with a good reputation among the real estate professionals in the area. Most of all - do your homework. If you do, you will choose Caruso Daniels, Inc. for all of your Kelowna and Okanagan appraisals.
About the author: Learn more about commercial appraisals from a trusted and well established source. Your Kelowna Commercial Appraisal is in good hands with Caruso Daniels Inc.
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