Real Estate Property Value

Written by Jeremy Horelick
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Real estate property value can be a complicated thing to calculate on your own, especially if you have no formal training in appraisals. Most people can see the obvious value in a beautiful home; it may have a stunning exterior or may be surrounded by majestic trees. Perhaps it has a four-car garage, new window fixtures, a basketball court, and a hot tub as well.

All of the extras above confer a certain value on any home, but how much value relative to the structure itself? Also, what are the hidden value-added extras that the layman may not see, and what are the deficiencies that are less obvious to the beginner but painfully obvious to a seasoned appraiser? A good appraiser can take what he or she knows about the design and construction of houses and add that to his or her knowledge of the regional real estate market to come to an accurate figure.

Determining Real Estate Property Value

There are legions of things a professional will take into account when calculating real estate property value. The neighborhood in which the home resides is absolutely critical, for it bespeaks the quality of schools, safety from crime, environmental health, and a myriad of other factors. What's more, the values of comparable homes in the area (or even on the same street!) are some of the best diagnostic tools at an appraiser's disposal.

Coming up with a valid real estate property value, however, is about more than just the neighborhood. The age and style of the particular house, the square footage, the property's functional utility, and its landscaping all play deciding roles as well. For every rusted window sill or aluminum side that detracts value, there may be a storm drain or deck finish that has helped the home preserve its value. Both must be considered equally when arriving at a fair market value.


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