Whether you are selling, buying or renting a piece of property, whatever it may be, stop what you're
Whether you are selling, buying or renting a piece of property, whatever it may be, stop what you're doing and get a real estate a raisal - it is a crucial step in every real estate tra action!
Now I know what you're thinking - you don't need an a raisal: extra cost on the whole tra action (it's not as expe ive as you might think) just to see that maybe you were right all along. But what if you weren't right and you just lost a big pile of cash?
This can ha en to both sellers and buyers: sellers underestimate the property value and sell lower and buyers overestimate, sometimes going overboard with prices!
Ok, now let's see what an a raiser does and how he/she does it:
An a raiser's job is to interpret many types of market value such as fair market value, i urance value, tax value and value in use and then place an estimated price on the a raised property.
Some of the commonly used methods in a raisal:
1. The cost a roach (also known as summation a roach) is the land value, plus the cost to reco truct any improvements, le the depreciation on those improvements.
2. The sales comparison a roach looks at other similar properties in the same area and derives an a roximate price from that comparison. This is one of the most used methods of a raisal because it's very reliable, but only if there were other comparable sales.
3. The income capitalization a roach (or simply the income a roach) is used for commercial and investment properties. This a roach takes an income stream and uses it to estimate a value - either by using revenue multipliers or single-year capitalization rates of the net operating income.
Out of the 3 methods above the second, the sales comparison a roach, is the most widely used for real estate a raisals because of it's reliability.
And now we get to the real question: when the seller gets an a raisal value that is le than he expected, what is to do?
* You can lower the price. I know it i 't what you want to hear, but sometimes it just comes to this. Buyers will sometimes back off if you don't lower the price, so decide if you want to sell at a lo or risk waiting more and probably getting the same kind of deal.
* If you made a very good impre ion on the buyer you can actually push it and hope for the best. Some will give in if the difference in price i 't that big, so try to "read" the buyers a bit and see what ha e .
* Negotiate with the buyer and maybe you'll both meet in the middle - if everybody gives in a little you may come to an agreement.
* Ask for another a raisal! Yes, this is one very good optio don't forget, an a raisal is an evaluation that gives a very good a roximation of value - but it's still and a roximation. Other a raisers may come up with different values.
However, the most likely scenario is that the outcome will be in your favor - you just don't want to take the chance of losing a pile of cash! Get an a raisal now!
Now I know what you're thinking - you don't need an a raisal: extra cost on the whole tra action (it's not as expe ive as you might think) just to see that maybe you were right all along. But what if you weren't right and you just lost a big pile of cash?
This can ha en to both sellers and buyers: sellers underestimate the property value and sell lower and buyers overestimate, sometimes going overboard with prices!
Ok, now let's see what an a raiser does and how he/she does it:
An a raiser's job is to interpret many types of market value such as fair market value, i urance value, tax value and value in use and then place an estimated price on the a raised property.
Some of the commonly used methods in a raisal:
1. The cost a roach (also known as summation a roach) is the land value, plus the cost to reco truct any improvements, le the depreciation on those improvements.
2. The sales comparison a roach looks at other similar properties in the same area and derives an a roximate price from that comparison. This is one of the most used methods of a raisal because it's very reliable, but only if there were other comparable sales.
3. The income capitalization a roach (or simply the income a roach) is used for commercial and investment properties. This a roach takes an income stream and uses it to estimate a value - either by using revenue multipliers or single-year capitalization rates of the net operating income.
Out of the 3 methods above the second, the sales comparison a roach, is the most widely used for real estate a raisals because of it's reliability.
And now we get to the real question: when the seller gets an a raisal value that is le than he expected, what is to do?
* You can lower the price. I know it i 't what you want to hear, but sometimes it just comes to this. Buyers will sometimes back off if you don't lower the price, so decide if you want to sell at a lo or risk waiting more and probably getting the same kind of deal.
* If you made a very good impre ion on the buyer you can actually push it and hope for the best. Some will give in if the difference in price i 't that big, so try to "read" the buyers a bit and see what ha e .
* Negotiate with the buyer and maybe you'll both meet in the middle - if everybody gives in a little you may come to an agreement.
* Ask for another a raisal! Yes, this is one very good optio don't forget, an a raisal is an evaluation that gives a very good a roximation of value - but it's still and a roximation. Other a raisers may come up with different values.
However, the most likely scenario is that the outcome will be in your favor - you just don't want to take the chance of losing a pile of cash! Get an a raisal now!
