Indonesia Estates tries to explain the term ‘Real Estate Appraisal’ and what it means.
A real estate appraisal is carried out by a person known as a property valuation surveyor or real estate appraiser. The value of the property once appraised is the fair market value.
There are various methods used to do appraise the value of a property/estate. A single property may be given two different values, one for the improved value and one for the vacant value. The same or similar property may be given a different value based on whether it is located in a commercial or residential zone. It is possible that the value that is placed on a property may not be the value that a real estate investor will consider when they are looking at a property for investment purposes. They may even ignore the value from the real estate appraisal process entirely.
The developments happening in an area should be taken into account by the real estate appraiser when a property is valued. This shows that the appraiser is a good one and is taking into account the potential profit that an investor could make on the property such as buying at a low price and selling it at a much higher price.
It is possible that an experienced real estate investor may do his/her own appraisal of a property on the expected value in 2-5 years time. They may even purchase a property that nobody is interested in due to it being dirty and make minor repairs and repaint the property to increase the value to enable a profit when it comes to selling the property.
Due to the different methods used and the way that a property or estate can be appraised by the real estate appraiser and/or the investor we can ask the question ‘is it a real estate appraisal’?
It is difficult to be absolutely sure of the value and potential value of a property or estate which is where knowledge and experience in real estate investment comes in. Indonesia Estates endeavours to provide as much information and links to companies that can help in your choice of real estate agent and investment opportunities to give you the best start possible.
