how do you determine real estate value?

Question

What is reasonable price for a piece of land?

"without benchmarking"

Answer 1

A real estate appraisal is really the only safe way to determine the value of a piece of land.

An appraiser will search public records and MLS (multiple listing systems) for similar pieces of land that have sold in the last 12 months. In addition to the previous, similar sales, an appraiser will indicate any differences between the subject property and those other sales, and will adjust the value accordingly. For instance, if there were 3 similar pieces of land sold in the last year and the subject property has better amenities (city water, sewage, etc.) that the others don't have, the appraised amount will indicate what the value of that additional feature typically sells for.

An appraisal is a very detailed report, usually 12-20 pages, and is well worth the expense if you are seriously considering purchasing the land. If you are planning on getting a loan as part of the purchase, your lender will probably send out their own appraisal even if you have had one. You can save yourself some money by starting both processes together, and if you decide against purchasing the land, you will only be responsible for the cost of the appraisal, which you would have done anyway.

I hope this somewhat long winded answer helps!

Answer 2

Although a CMA is a typical tool for Realtors the actual value should only be counted on through an "appraisal". State certified appraisals are never "benchmarked" but rather true values lenders and other financial institutions count on to determine real value. Cost about $300-500 depending on size and area but well worth it if you wish to determine real estate value.

Answer 3

What's "without benchmarking" in real estate?

A market analysis is the standart way. A comparision of similar prices in the same neighborhood. This includes square footage, number of bedrooms/bathroom, garage for example

Answer 4

no one individual or possibly a team of people can be sure the comps of actual sources. actual sources is accessible and offered for what the guy shopper is prepared to pay for the valuables. as quickly as offered this actual sources is now a "comp" or comparable to different properties with a similar form of sq. pictures, bath etc. properties delight in via the provision and insist of what number properties are available. case in point ; in case you visit a baseball activity how a lot do you pay for a bottled water? in many cases $5. Does this recommend that that's worth $5 funds? this relies upon upon the customer whom feels he's thirsty adequate to pay the fee. a similar is going for actual sources. some shoppers fee a Pool bigger than the massive open front room that yet another might fee. via the way. actual sources is between the main rewarding and premier techniques of bobbing up a lot of money, whilst residing a freedom existence-form.

Answer 5

The best way is to determine what a willing (unrelated) buyer will pay and what a seller will accept. Otherwise you would look to comparable sales of similar property in the area