How to consider negative aspects of the property

 The most important part of dealing with real estate is being able to tell what a property is worth. This value will tell you whether a given investment will be ultimately profitable, or it will fail. Therefore, you should establish a way to estimate the value of a property. It should be a flexible system that can apply to multiple properties, and it should take many different factors into account. If you stick with properties in the same area, you will figure out a basic formula that you can use. Here are some of the things you need to consider.

First you have to look at the location. If it's a residential area, you should look for statistics about home sales in the area. See what the rate of sale has been in recent years, and find out if sales have slowed down or sped up recently. Then, of course, look at average sale prices. If you compare these houses to the house you're considering, then you will have a basic starting point for the price. If you find the most similar house possible, you'll be even better off. Otherwise you'll have to compare relatively based on features and locations.

Next you should consider additions that have been made to your property that make it stand out from the rest. Is the basement finished? That will add to the final value of the house. The same applies if the yard has had professional landscaping, or the home has features installed such as a security system. Make a list of all of the features that are present in the house you are considering, and add their value to your estimation. At the same time, you need to consider the negative aspects of the property, such as poor plumbing or peeling paint.

If you don't feel like estimating all of these factors by yourself, then you can use the appraisal services of various realtor groups. Usually the cost is very reasonable, and you can get a close estimation of what exactly the property will be worth. However, if you're analyzing dozens of prospective investments per day, it isn't reasonable to pay for every appraisal.  The place you choose should not be highly commercialized and ought to be away from the busy roads. Buying a home is a big job, you must look for things like:

    The roads are well constructed and not still under construction
    The area should provide you an easy access to your work place
    It should well connect to the schools and colleges so as to make your children’s work easier
    In case this is a second home for you, then trying to get some land located at vocational point is best. This may be at countryside or s hill station.  http://rhnws.com.au/

Commercial property should be inspected by professional

 You cannot walk into commercial real estate blind. This means that before you venture into this arena, you should have an idea of the type of properties in which you are interested. If you don’t make investment decisions that are smart, you could lose a good bit of money.  Take digital pictures of the place. Be sure that the pictures show any current problems with or damage to the home. Real estate deals must include inspections. Pay particular attention to credentials when it comes to pest inspections, since it is not uncommon to encounter people working in pest removal without a license. This will avoid bigger problems in the post-sale.

Always keep tenants, otherwise, your commercial property will end up costing you money instead of making you money. If you have any empty property, then you are responsible for its upkeep and maintenance. If you notice that you have several vacant properties, try to find out why, and look at ways of enticing tenants back in. Before you enter into any negotiations for a lease on commercial real estate, attempt to decrease anything that may be thought of as a default event. This will greatly lessen the likelihood that the tenant might default. This type of situation is considered very undesirable.

Prior to selling commercial property, have it inspected first by a professional. Any problems or necessary repair identified by a professional inspector should be addressed and fixed as soon as possible. Tour any properties you are considering for purchase. Definitely consider having a professional contractor go with you when looking at potential properties. Submit a first offer and solicit counteroffers. Think long and hard about the counteroffer before deciding to accept or decline.

 

It is up to the borrower to arrange the appraisal for a commercial loan. Banks do not allow the appraisal to be used at a later time. Cover yourself and your interests by ordering it yourself. When you are first starting out in real estate investing, the best thing is to keep it simple and start with one investment strategy at a time. Pick out just one type of property to begin with and then give it all you’ve got. You can be more successful when you’re good at one type as opposed to just average at different types.

Consider any tax benefits you’ll receive through a commercial real estate investment. Investors get both depreciation benefits and interest deductions.You should know about this income before you make a investment. Be sure to deal with a company where customer care is important prior to buying. Otherwise, you could end up having costly, but avoidable, consequences from your deal. It is prudent to consult a tax specialist before purchasing real estate.  http://rhnws.com.au/

External Appraisal in residental real estate transaction

 An appraisal can be used for several reasons such as mortgage purposes, homeowner’s contesting high property taxes, homeowner’s contesting high premiums (for insurance) charged based on annual appreciation increases etc. When buying or selling a home, an appraisal can give both parties a better idea of the value of the property thereby helping them to determine the purchase /sales price. But an appraisal is rarely initiated by the buyer or seller. An appraisal in typical residential transactions comes into play when the buyer has to be approved for a loan. It is then that the lender arranges for an official appraisal.

An appraiser will judge various aspects of a home. Some basic aspects include the site, amenities, additional features in the home and physical condition of the property. It really is not about the superficial condition of the home; meaning clutter and too much furniture will not be considered. His judgment is based on specific parameters; he will take measurements and delve into other such details.

For residential properties, there are two basic methods that appraisers employ:

Cost Approach: This method is used when a building is relatively new and the costs of construction are known. The appraiser will determine the value by estimating the cost of replacement of the structure if the property was destroyed.

Comparative Approach: More commonly known as the Sales Comparison method bases its estimate by comparing the property in question to other similar properties sold recently in the area. Basically similar property is found and depending on their features and your home’s features, value would be added or subtracted to your home. Other estimates are also made such as what a comp would have sold for if it had a particular feature unique to your home.

An appraisal report will indicate the value of the home, any major structural flaws or issues that may depreciate the value of the property, the areas’ general market value, comparison to three other similar homes etc. It is important to note that an appraisal should not be confused with the Comparative Market Analysis (CMA) which an agent may conduct. A CMA also employs the method of comparables to roughly estimate the value of the home. An agent usually does a CMA to help the seller determine the sales price. A well done CMA may determine a value close to the appraised value of the home but it is not accepted by banks or lenders.

An appraisal is again not to be confused with a home inspection. A home inspection delves deeper into the physical condition of the home and analyzes finer details that an appraisal may not. Appraisals, as mentioned before, are usually ordered by mortgage lenders to safeguard their interests. They will only approve the loan amount if the appraisal verifies the negotiated and agreed upon sales price by both the buyer and seller. Lenders simply check to see that if the borrower defaults, then the collateral (home) will be worth it  http://rhnws.com.au/

Commercial real estate appraisal sales approach

  Performing the sales comparison approach includes selecting sales comparables and making appropriate adjustments. Selecting comparables if often the more challenging step. There are minor nuances which are not obvious. The process of accurately making adjustments requires research, skill and experience. Selecting comparable sales is the most critical aspect of the sales comparison approach. Truly comparable sales must be utilized for value indication to be meaningful and impact the final result for less than sales which are not comparable.

  Appraisers usually focus on land use (type of property) location, size, age and date of sale when selecting comparable sales. Selecting sales comparables involves selecting which feature (location, size, age and date of sale) are most meaningful. Since real estate is not fungible and sales occur periodically, comparables are never identical to the subject property. Comparable sales should be the same land use as the subject property in virtually all cases. If a property is being appraised as renovated, the comparables should be the property type as renovated.

Current trends, recent history and nuances for a property type influence which issues should be given most emphasis. For example, if property values have increased rapidly, the date of sale likely is more important than age. If property values have been stable and location adjustments are difficult to determine, location should be given more consideration in selecting sales. Climate controlled self storage properties have dramatically different rental rates than self storage facilities without climate control. In most cases, using climate controlled self storage facilities to value a self storage facility without climate control would not be appropriate.

Both the net and gross amount of adjustments made to reconcile the comparable to the subject property are indicative of the quality of the comparable sales. The sales comparison approach is most credible and reliable when adjustments are minimal. Appraisers use a variety of techniques to make adjustments to comparable sales. These include the matched pair sales technique discussions with buyers, sellers and brokers, regression analysis, discussions with other appraisers, personal observation and experience. The matched pair technique is to locate two sales which are identical except for one issue. The difference in sales price is evaluate to determine the appropriate adjustment.

The ranking technique is a helpful approach when performing the sales comparison approach. Sales are ranked from most desirable to least desirable, with the price per square foot or unit listed beside each sale. The sales which are most comparable to the subject property provide an indication of value. The quantity and quality of data available to perform the sales comparison approach impacts its accuracy. For homogenous properties such as entry-level housing, it is quite reliable and given primary emphasis. For income properties, the sales comparison approach is often used to double-check the value conclusion from the income approach.   http://rhnws.com.au/

Real estate agents should knows market stratergy

 A good real estate agent can make or break a home buyer's experience. They are more than just intermediary's; they work with buyers and sellers to provide the best support and direction to their clients. Top real estate agents know the housing market trends and how these trends will affect property values. Home buyers should choose an agent who knows the city's communities and neighborhood and can work to find the best property to suit their clients' needs and objectives. An agent should understand market projections and provide feedback on the potential future resale value of the property to ensure that it is a sound investment.

Real Estate Agents and the MLS

The Multiple Listing Service (MLS) is the most popular tool that real estate agents use to find a buyer a home and to advertise a seller's property. It is a database of available properties for sale and is used by real estate agents and brokers. The database is also available online, making it accessible to the public as well. MLS is used widely in Canada and the United States. The database also offers an advanced search field in which criteria can be entered to narrow a search to match a client's specific needs. An experienced real estate agent who understands the community and the market will be able to use this search to find the best listings for the buyer. The same listing service and experienced real estate agent will also be able to create an attractive listing for a seller that speaks to prospective homebuyers.

Going Above and Beyond the MLS

Successful real estate agents who commonly specialize in luxury real estate will use their sales experience, connections in the industry and understanding of the market to find additional properties that are not advertised on MLS. The ability to do this gives their clients an edge over other buyers who are looking for similar homes in popular neighborhoods. Agents who accompany buyers to home viewings can offer honest and critical feedback on the property, specifically relating to imminent renovations, the neighborhood, local amenities and the social-economic standing of the community. These are all important considerations for prospective buyers and a top real estate agent will know this information.

Real estate agents also negotiate the sale of the property and ensure that the final contract has the client's best interests in mind. All information about the property should be disclosed and all terms and conditions should be explained in full prior to signing. Buying a home is an exciting time and should be as stress-free and uncomplicated as possible. Working with an experienced and professional real estate agent will help homeowners find their dream home in a painless and timely fashion.  http://rhnws.com.au/

What are the Marketing skills need for real estate agents

 The real estate agents can just use their basic marketing skills, added with a little bit of research of the area they are working in, and they can be off to a very good start in profession. However, progress is the motivation for every professional. In addition, for a real estate agent, the progress is counted in terms of how bigger investors they are providing their services to. It is like an achievement for any agent to be working for a wealthy millionaire investor. However convincing a millionaire to hire you as their consultant is not an easy task. They need to be shown a lot of motivation.

You need to figure out their needs and then target their interests accordingly. When you look at the people who at the people who are making investment in buying homes worth multi millionaires, you will observe that these people are mostly self-made millionaire. Such as, the IT experts, engineers, doctors and people related to sport and media industry. A person who is willing to mark a good presence amongst such people should study their nature. According to a research in the market, 70% of the multi million dollar investments being made in the real estate market are by the people who belong to sports and entertainment industry. The biggest concern for this particular class of people is confidentiality and privacy.

 Even a little news like looking a plot somewhere can become a highlight in the media for such people and it can haunt them, so they are looking to avoid any breach of information in first place. You need to give them confidence by providing exclusive and private consultancy. You should make sure that no news gets out from your side. For a real estate agent working for a wealthy investor, you also need to know their scope of interest. It must be understood in first place that they are different from how a middle class person will behave. They are more interested in the luxury, which a place has to offer rather than worrying about the price. Therefore, when trying to convince a big investor focus on trying to show them the exclusive luxurious features about a home.

If you focus on stuff like price and problems in services, that one might have in this area can really ruin the picture for such investors. Therefore when presenting a house to a millionaire, you should only highlight the bright side of the picture. The big clubs and restaurants available around the place that you are representing, more famous and rich people who have made investment in the area around and some of the design features should be the agenda of your presentation when displaying a home to a millionaire.  The real estate agents can made some big bucks if they can makeit into the market of such millionaires.  http://rhnws.com.au/

Way to approach with real estate agents

Knowing how to deal with real estate agents is the best way to become pro-active in the buying or selling process and get the most favorable results for you. Before you approach a real estate agent, put yourself in their shoes and consider their perspective. Agents work on a commission or part commission basis.  If someone was selling a property, you would be anxious to secure them as a client. You know they want to get the best possible price for their real estate, so you would probably give them a high estimate of the value of the property.

  If a home buyer came into your office, you would see them as an opportunity to sell a property and earn a commission. You know that the buyer wants the best possible property at the lowest possible price. However, you don't want them to be unrealistic with their expectations. That would be a waste of their time and yours. Now that you have considered the real estate agent's point of view, you are in a better position to approach them with confidence.

To Seller

You want to establish a relationship of mutual trust and respect with the real estate agent, but you also want to remain in a position of power. If you want to sell your property, you will be willing to negotiate a lower price if it's realistic, but can wait until a better offer comes along if someone offers too little. On the other hand, don't insist on an unrealistic price for your property. The real estate agent is not going to act very enthusiastically on your behalf if he or she doesn't think there's a chance of making a sale.

To Buyer
Understand that the real estate agent is working primarily on the seller's behalf. This does not mean, however, that they are working against you. Take advantage of the agent's experience and connections and inspect as many properties as you can. This will give you an even better feel for the market. When you find one you like,  offer less than the asking price and gauge the agent's reaction. If they are over-enthusiastic, it may mean the seller is willing to settle for even less, so you may be able to negotiate an even lower price. If the agent is firm about the price, then try to find a middle ground.

To Investor:

It is important to establish a relationship with a real estate agent. Keep in regular touch with them to let them know you are serious about investing. Invite them out for lunch or coffee and chat about business. If you are in the forefront of their mind, you will be the one they contact first when a good investment becomes available. http://rhnws.com.au/

The most important stratergy for real estates

 If you are a real estate agent based anywhere in the world today, there is no way you can choose to overlook the essence of real estate branding. Branding is quite an important aspect in modern day business segments and thus not just limited to the real estate and property development industries. If you want people to know about your business and therefore be at ease to buy services or products from you, you have to sell your brand out there. People out there in the market have to learn and engage with your business on a personalized platform.

 If you are well placed and experienced in the real estate and property development industry, it is most likely that you love to be around professionals in this ever competitive industry. If that is the case, you must have heard most of these experts putting lots of emphasis on real estate branding in the recent times. Therefore, if you want to grow your business on the internet and offline both, there is no way that you can choose to overlook the essence of branding.

There is no doubt that in the modern day, most buyers turn to the internet to search properties that they would like to buy. That is why most property sales sites have been getting increasing web traffic in the recent times. Again, if you do your research right, you will realize that most property buyers would rather click on a video posted on your website and understand what you are offering rather than having to read through large pieces of text.
Social Network Contribution:

This is perhaps the most important among these three strategies for real estate branding. It is important to look out for the most useful social networking sites such as Facebook and Twitter. You can then create your profile on these platforms and then link those pages with your website or blog. Much as this might sound as being a common sense kind of thing, many people choose to overlook it and that is probably the reason why they are not getting the right kind of results when it comes to marketing their businesses. Most buyers today would be apt to buy your property if they come across it in more than one place on the internet.

Communicate with Experts:

If you want to achieve success in real estate branding online and sell your properties through the internet in a more expeditious manner, it is important that you create networks with other professionals in the industry. One of the best ways through which you can network is to place guest posts on the most authoritative blogs on the internet. If you can include a link back to your website in the comments that you post on other blogs, many people will easily find you and thus buy from you.  http://rhnws.com.au/

Ways that real estate agents can influence

 There are, however, several ways that Real Estate Agents can influence prices to a certain degree. These include;

      Getting the price right in the 1st place – an overpriced listing will attract less buyers, which will mean it stays on the market for longer. It is a fact that the longer a property stays on the market the less chance it has of obtaining a premium price. Advice on presentation is I remember watching an episode of Selling Houses Australia in which the host questioned the Agent as to why he hadn’t advised the sellers to clean the house and yard, and get rid of clutter, etc. Marketing is a well executed campaign, starting with quality photography and a well written advertisement will attract more buyers. Put these buyers into competition, and hey presto – a premium price is achieved.

Negotiation Skills have the ability to steer a buyer towards the right result for all concerned. No tricks, no fancy lines, just knowing what to say and when to say it, and quite often what not to say. Quite often this is accompanied by the Agent actually building a relationship with the buyer in order to gain their trust and respect. There are of course many areas in which a Real Estate Agent has no influence at all over the prices. In contrast to the above, these are the Macro Influences. These include;

Interest rates: unless your Real Estate Agent happens to be on the Board of the Reserve Bank, there is nothing the agent can do to influence these.

Employment: again, unless your Agent also owns a major corporation in your area (such as one that employs thousands of locals) then they are unable to do anything about this. If more people want to live in your area as it is close to work, prices will increase – simple supply and demand.

 
Local planning:

Unless your Agent is a Member of Parliament or on your Local Council, they are unable to do anything to influence local planning issues that will address shortages in local housing, thereby addressing the major influencer of prices – again, local supply and demand.
       
New taxes:

From time to time, the Government sees in their wisdom to implement taxes and charges which directly influence supply and demand. An example of this was the Vendor Tax introduced in New South Wales towards the end of Bob Carr’s reign as Premier, and subsequently removed by Morris Iemma, although by then, the damage had been done – the number of investors wanting to buy was basically reduced to zero, and took years to recover. http://rainehorne.wordpress.com/

How to get more commissions and fees in real estate brokerage

Understand that a sale today can lead to a leasing opportunity in the future.  A leasing opportunity in the future can lead to a property management appointment.  A leasing opportunity today can also lead to a sales opportunity in the future.  Stay in contact with all of your top clients with quality property.

Connecting with the right clients will help you with the growth of market share and the commission opportunity that you need.  Consider the following questions:

    What can you do now to be comprehensively and professionally better than your competing agents?
    How well do you know your sales territory and the properties within?
    When was the last time that you asked for referral business?
    How well do you maintain relationships with your established clients and prospects?
    Is your database up to date or can it improve?
    Where will the next sales or leasing opportunity come from?
    What are the growth segments of your property market?
    Why should someone use your services as opposed to any other competing agent?

When you know the answers to these questions, you will understand the segments of the market that can offer you the best levels of opportunity and growth.

It takes a long time to convert a client and win a listing.  Unfortunately many agents and brokers get to that point and then fall behind badly when it comes to servicing the listing.  If you have taken the time to prospect and win the property or the client, it is just the start of the process.  Creativity in marketing is then required to attract the levels of enquiry and inspection opportunities.  Client feedback is also paramount to helping solve the property challenge.

So here are some tips to help you generate more fees as a broker or an agent:

    Your proposal or presentation should be structured around the best solution for the client and property.  Understand those factors before you start.  If you have structured your message accordingly and professionally, you will not be necessary to discount your fee or your marketing costs.
    Most clients like to work with an agent with dominant market share for the property type and the location.  Get plenty of signboards into your sales patch and territory so you appear to be the agent of choice.  The exclusive listing process will help you do that.
    Structure a reward or bonus fee for a better price or rental outcome.  If your industry standards and commissions allow, structure your commission fee base around the possibility of a better fee for a better outcome.    http://rhnws.com.au/

Issues for executors when selling a house

 Probate is often applicable in most cases where the deceased left a will which cannot be executed by the Executor until after legal confirmation by the probate courts. Therefore the administration of the deceased’s estate is not valid without the due process of probate following suit.

There are some instances where probate may be notwithstanding in the division of assets, such as is the case with non-probate property, and this has been exhausted in the article on Probate and Non-Probate property.

So for the cases where probate applies, why would you sell a house in probate? Here are the reasons for selling real estate in probate:

To settle liabilities

Sometimes the deceased leaves behind a number of liabilities in terms of debts, taxes, and claims from creditors whose payment may not be realized without liquidating some assets from the deceased’s estate.

In such cases, the most prized assets, such as real estate, prestigious vehicles, a boat, etc, come in very handy in settling the liabilities through liquidation.

Monetary preferences of the heirs

The last will may have a number of heirs and beneficiaries named to inherit the deceased’s real estate properties, but the heirs may not be interested in taking up the property as is. Many heirs prefer having the inherited real estate turned into an equivalent monetary value that they can then make more use of.

No Share – Don’t Dare”

The last testament may have a provision for the deceased’s real property to go under joint custody or shared ownership amongst two or more heirs. However, inheritance is famed as the farm whose seeds seldom grow together—and some heirs would rather have a probate house sold at an undervalued price, than share the property with an estranged fellow heir.
Selling the house in probate naturally falls in place as a solution, even if only for the sake of peace and sanity—especially the Executor’s!

Cumbersome management of the inherited property

Managing real estate, and an inherited one at that, may not be as rosy as it is cut out to be... There are additional responsibilities and burdens attached to the property and they include:

·       possible repairs and renovation costs

·       pending or continuous mortgage payments

·       associated property taxes according to the state laws

The tragedy of loss

Some people wouldn’t mind it or just don’t care altogether—but you can’t blame yourself if you’re not one of them! There are enough urban legends, superstitions and mysterious occurrences that may have worked their way on you. Now, what if the deceased was close to you...a relative, a loved one, and one whose house was left to you? It’s hard enough accepting your loss and coming to terms with the fact that they’re gone forever—so, what of living in their house? Figures!  http://rhnws.wordpress.com/

How to choose the best sales agent

 How do you choose from so many agents selling real estate? How do you know which one will do the best job and secure the highest price? And how can you be sure? The difference between a good decision and a bad one when selecting an estate agent can be tens of thousands of dollars. So it clearly pays to do your research and spend time to get it right.

Having decided to sell your property often the best price to start finding an agent is within your circle of friends, family and peers. have any of them bought or sold recently? What was their experience? Would they wholeheartedly recommend the agent they dealt with? It is an advantage to attend other open for inspections in your local area. This will not only help educate you on local prices but also guide your own expectation. The bonus is that you will meet local agents and sample their approach first hand. Are they knowledgeable about the property and the local area? Do they present themselves with warmth and professionalism and make you feel comfortable? Most importantly, did they contact you after your visit and gather your feedback on the property and attempt to assist you with any other needs?

You need an agent who knows your local market and has proven he or she is a leader by achieving consistently high sales results. A champion sales agent should be able to clearly articulate their success stories - backed up by industry sales data - highlighting their ability to achieve results during even slow-moving property markets. Do they display the personal and inter-personal skills necessary to deal with all types of people and gain the best result in your interests? Are they a clear communicator? Do they listen to your needs? Are they confident without being cocky and appear resilient enough to go into battle for you with a tough buyer?

A great negotiator is perhaps the most underrated skill of an real estate agent. Anyone can sell an average property for an average price. But one who can influence a buyer to pay up to the maximum they can afford is worth their weight in gold. When selecting an agent, be sure they have personally demonstrated some of the skills and techniques they will use on your behalf. Can the agent be flexible enough to consider options that can produce a win-win for you and the buyer? Ask questions and interview them like you would someone who has applied to you for a job. Seek examples of how they handled difficult situations. Through all of this it will soon become clear if they know what they are talking about.

Has the agent built a reputation for honesty, ethics and professionalism in all their dealing with people? Can they provide recommendations from previous vendors? These can be valuable, especially if they are from people you know and trust.  http://rhnws.com.au/

Market value versus appraisal value

 Market value can be defined as the highest price a buyer is willing to pay and the lowest price a seller is willing to accept on a particular piece of property. Another definition for market value is the price a house will sell for within a certain amount of time. One more definition for market value is that it is the most probable price a particular property should sell for in a competitive and open market with all conditions for that market being met by the property, such as the buyer and seller acting on their own and the price not being affected by any undue stimulus. Market value is usually not the price the property could have been sold for, but is the price the property is sold for. Several factors influence market value.

These are location to a good school district, well fitting additions to the existing house, well-maintained neighborhood, the house not being over improved or the largest house on the block, and the last is that the style of the house matches the neighborhood it is in. Other factors to consider are the motivation of the buyer and seller, how well informed both parties are, the amount of time the property has been on the market, payment arrangements, and the final price being normal, not being affected by any special or creative financing or sales concessions by any party to the sale.

Appraisal value is defined as the opinion of a qualified appraiser, based on the knowledge, experience and analysis of the property being sold. A thorough property appraisal generally scrutinizes factors that may benefit the homeowner to become acquainted with. These factors include the current market value for same type home, in same condition and in the neighborhood of the homeowner's property. Considering fluctuations in the real estate market is important as well as the considering the demand for housing of that type at that particular moment must be another consideration.

Appraisal companies generally have access to census data for the particular area as well as the statistics regarding local home sales for the city, county and state where the property is located. These appraisal companies will also have the ability to research the previous sales as well as the tax records of the property. Having access to these records affords the appraisal company the ability to acquire all the facts pertaining to the property and consequently to present a clear value of the property. Getting a thorough appraisal offers many advantages to the seller as well as the buyer.

The difference between market value and appraised value can be easily explained with the definition of each term. The market value of a home, based on the buyer, is the price the market is willing to pay for the property in question. The appraised value is the unbiased value of the property after a qualified person who is generally employed by an appraisal company, real estate company, lending institute or a bank, has completed an inspection on the property.  http://rhnws.com.au/

Steps involved in mobile home appraisal

Steps Involved in Mobile Home Appraisals

Despite conforming to the HUD Code of safety and quality, the per square foot cost of manufactured homes is generally 10 to 35 percent less than the per square foot cost of conventional homes. Hence, appraisal of manufactured homes has assumed a great deal of importance in the face of increasing popularity of these homes. At the least, the appraiser is expected to perform the following tasks:

Visually inspect the surroundings and the property under consideration
Determine the approach to be used for real estate appraisal .
Assuming that comparable sales approach is used, the appraiser should collect comparable sales figures for recently sold neighborhood properties. Check the accuracy of the collected data by comparing the figures against the numbers mentioned in the public records

Choosing the Appropriate Method of Home Appraisal
An appraisal is an unbiased estimate of the value of the property under consideration using the standard and approved methods. The licensing requirements, for appraisers, vary from state to state. While appraising a property, the absorption rate for a neighborhood is particularly important. Absorption rate is defined as the length of time required to sell off the entire inventory of houses in a given neighborhood. A duration of 6 months or more is indicative of an oversupply of houses in the neighborhood and will consequently lower the price of the property being appraised.

Comparable Sales Approach: Comparable sales approach takes into account the price of recently sold comparable properties. A comparable property is a similar property that is located in the same neighborhood. Comparable properties are also referred to as bench marked properties. The price of the property, that is being appraised, is equal to the approximate average of the prices of the aforementioned bench marked properties. Since no two properties are alike, the appraiser is expected to make the requisite adjustments in order to arrive at the fair market value of the appraised property.

Cost Approach: This approach is suitable for manufactured home owners who own the land in addition to the house. In this case, the cost of the land is estimated using the comparable sales approach or some other suitable approach. The manufactured home is known as an improvement made on the land. From the cost of the improvements made on the land, the cost of depreciation of the manufactured home is subtracted and the resultant is added to the cost of the land. http://rhnws.com.au/