Real estate appraisal factors to keep in mind

First off, keep in mind that appraisals done on commercial real estate and residential properties vary in terms of the process, with the former tending to be more subjective in nature.  This is due to the value being derived from relative and regular rental rates versus the overhead.  In other words, underlying assets tend to be given more importance when it comes to residential properties.

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But whether you’re having an appraisal for a residential or a commercial property, keep in mind that the actual inspection is just a small part of the entire appraisal process.  Appraisers don’t just examine your property but likewise take into account factors like zoning records, comparable sales, public ownership, and replacement costs.  All these are considered before the final estimated value of the property is reached.  This means that you shouldn’t expect to get the final value immediately after the inspection; the process can take days or even weeks.

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Never withhold any information pertaining to the property nor misrepresent the facts surrounding it.  Appraisers will be able to ask the right questions anyway, and if you are caught unable to verify, it can severely damage the credibility of anything else you say. 

Moreover, prepare all documents related to the property, from the tax bill and the blueprint if available to income statements.  Don’t waste time second-guessing why a given document is being asked and just comply; the sooner you do so, the faster the inspection and you’ll be one step closer to getting that appraisal. 

Look at online sites for common documents being asked for by appraisers and have these ready during the inspection.  Also, note that there are three types of report: a restricted use report, a summary report, and a self-contained report.  Research on the differences carefully and inform your appraiser what type of report you’ll need.

NovaStar Appraisalsis an independent hub for real estate appraisals. The company is devoted to assisting clients in finding the best appraisers for their properties. More tips and insights on property appraisal here.

Renovations that hurt the value of your home

 When buying a new home, a lot of people already look ahead and think about how much they can sell the house when the time comes.  While various factors affect how prices move in the housing market, there are mistakes that a homeowner can make that can seriously hurt the value of their home.  Certain renovations for one.  Creating unnecessary changes that can put further burden on the next homeowner will simply lower a home’s resell value.  Here are some other home renovations that can have the same effect on your home.

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Wall renovation:  Even the most straightforward changes like putting up too much wallpaper or complex modifications like adding textures to your walls can lower the value of your home.  This is considering the cost it would take to have it removed if the next homeowner doesn’t share your aesthetics.  The same can be said about semi-permanent fixtures such as tiles and carpeting.

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High-end kitchens<:  Upgrading your kitchen to the highest level is one of the most costly renovations one could have.  However, the next buyer may not appreciate it as much or shoulder at the same cost.  The resale value could be less than $10,000 than what the homeowner paid for in the renovation.

Swimming pools:  A lot of people think that adding a swimming pool can increase the value of their home where in fact, it does the opposite.  Swimming pools cost a lot of money in terms of upkeep, something future buyers would not appreciate. 



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How Does a Home Appraisal Work?

A home appraisal refers to an unbiased and professional opinion of the value of one’s home.  The valuation is usually done either for purchasing and selling of a house and for refinancing purposes.

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Appraisals are done to determine the home’s contract price in a purchase-and-sale transaction, based on various factors like the condition, comparable sales, available amenities, and foundation quality.  Appraisers will look at both the exterior and interior of the home, thoroughly inspecting the minute details of the living space, from the layout and flooring to plumbing and parking spaces.  

For refinance, appraisals are needed to assure the lending institution that it is providing the correct amount of money based on the home’s worth.  This is important as the house will serve as mortgage collateral, just in case things go awry.  Banks are therefore protected via appraisals from lending more than it would need to recoup the money.

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It is usually the lender that orders the appraisal, hiring a licensed or certified appraising firm that is familiar with the area.  Appraisers are expected to be impartial for the valuation process, with no vested interests or relationship with the homeowner, as directed by law.  The price of the house is determined based on his or her unbiased observations, comparative assessments, and existing market trends. 

NovaStar Appraisals provides appraisers for homes and businesses. Its team is in touch with professional appraisers for jewelry, antiques, and artworks. To know more about the company’s services and offerings, check out this page.

Have You Ever Wondered How Classic Automobiles Are Appraised?

The best appraisers in the world can tell you the value of just about anything. From houses to ancient artifacts, appraisers have done their homework on the item and go through a process before determining its value.

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Below are several factors that guide how classic cars are appraised.

First, there’s the National Automobile Dealers Association or NADA price guide. This guide is what many appraisers consider the foremost authority in appraising all sorts of cars, including classic automobiles. On its website are estimations and price ranges that are comprehensive and consistent. But since classic car prices are relatively unstable compared to more modern automobiles, appraisers check out other factors such as demand and rarity.

Appraisers go online and check the usual sites to see which classic cars are highly sought-after and how many units are being sold in the market. This information greatly affects the pricing of the vehicles. Naturally, the higher the demand, the higher the price, and the less the units, meaning, the rarer the car is, the higher the price.

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Finally, appraisers work with car experts to check the condition of the car. There are guidelines for a car’s condition as well such as the Chet Krause rating system, which standardizes the categories for car conditions.

NovaStar Appraisals has been assisting clients in finding the best appraiser for their valuables and properties. For more about NovaStar Appraisals and the services it offers, check out this webpage.

Diamonds In The Rough: Appraising Vintage Antiques And Collectibles

Even today, the fascination with the odd and nostalgic has fueled a generation of collectors looking for vintage items, with a few amassing collections of unusual pieces of immense value. Many collectors often go from pawn shop to flea market, always keeping an eye out for rare finds hidden among junk piles, while people rummage through heirlooms and attics looking for a rare item to sell at a premium.

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What items might fetch immense prices in antiques and collectibles sales vary. It isn’t unheard of a flea market find that was bought for a low sum that turns out to be much more valuable than the seller or the buyer initially believed. This is especially true for well-preserved items that can fetch immense prices.

Determining the value of a collectible is based on the interplay of several factors. The most influential of these are rarity, quality, and authenticity. Some items fetch princely sums simply by their rarity. Authentic items—often very rare themselves—fetch considerable premiums over knockoffs and replicas, especially if they happen to be of superlative or well-maintained condition.

Restorations are a complex matter in appraisals. Extensively restored items may not fetch a high price, especially if the methods of restoration were invasive. However, certain items such as model trains and typewriters, when professionally restored, often command better prices.

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Collectors and sellers alike face other immense difficulties in accurately assessing the value of their items. Many sellers, thus, would need the assistance of a dedicated appraiser to gauge the true value of any collectible or antique item they find.

NovaStar Appraisals is a trusted hub that educates clients about valuation and helps them find the right appraisers for their needs. Visit this blog for more updates on item and property appraisals.

Construction Defects That May End In Appraisal Disaster

The main goal of a homeowner in having their house appraised is to obtain the highest possible value for their home before putting it on the market. Appraisers, on the other hand, are there to look for things that can lower the value of a home, things like construction defects.

Construction defects can range from minor problems such as doorway cracks or chipped paint to defects that require major renovation like faulty electrical wiring and cracked windows. Appraisers are trained to look for and take note of all these defects.

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While spotting and fixing construction defects primarily makes a home safer to live in, it also raises the value of it during appraisals.

One of the most difficult defects to spot are the ones that present themselves during certain conditions. Take for instance problems with windows and window sills. On ordinary days, people normally don’t take notice. But if an appraiser arrives after an afternoon rain, and windows are defective, it will be easy to spot leaks at the corners. In contrast, during searing hot days, appraisers will have to check the cooling units of the home to make sure everything is in good working order.

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Sometimes, appraisers visit at night, which means homeowners need to check if all the lights are working. Those that do have to be replaced before appraisers visit.

NovaStar Appraisals has been assisting clients in finding the best appraiser for their valuables and properties. Learn more about the company here.