Reasons To Get Property Appraisal When Selling a House

When you decide to sell a house or a utility, you will need to know the current market value of the property. In this scenario, you cannot determine the value by simply calculating the price you paid at the time you bought the house. Many homeowners get confused about the estimated value of their property because it involves a complex process. For example, you bought a house in the year 2009 at a price. After ten years, the value has increased depending on the size of the property. Meanwhile, the value of an asset installed in the house may decrease due to depreciation. This is why you should get special purposes property appraisal when selling a property.

Property valuation methods

The value of a property is determined after it is reviewed through the economic condition, auditors, financial institutions, accounting firms, social trends, neighborhood impacts, and current regulations and laws.

There are three most common approaches for property valuation. 

Sales Comparison Approach

An estimate of value is derived by comparing a property with recently sold properties with similar characteristics. Comparable such as size, feature, and location are considered in determining the property's market value.

Income approach

This method uses the estimated value of income-producing properties such as office buildings, shopping centers, and apartment complexes.

Cost approach

This method is based on the cost of construction, building materials, installation, and quantity of materials. It involves separate estimates of value for the building and the land.

If you are planning to sell a building hire an appraisal service to conduct water and wastewaterutilities appraisal to get the estimates value of the property. Professionals at such companies have first-hand knowledge and experience on construction projects involving commercial and industrial properties.