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Property appraisals are not just something you get before you buy a property. There are many reasons why you would want to get an appraisal for your property. Getting a appraisal is not as difficult as it sounds, but there are cautions that you should be aware of before you hire an appraiser. Learning how to get an appriasal for your investment property is quite simple when you can weed out potential roadblocks. The appraisal that you get is the best educated guess on the current value of your investment property. Appraisals are not an exact sceince and could vary between appraisers. Just like opinions vary, so do the actual costs that you can be charged for an appraisal.
Why Get an Appraisal for Investment Property
It is completely normal to get a property appraisal every few years. Some investors use appraisals to determine the amount of appreciation that a property has received. This can be a huge factor in weighing the actual profits received on an investment. Taxation is another valid reason to get an appriasal. You don't want to be paying too high of taxes because your previous property appraisal was incorrect. An update to the actual value of your property is crucial. Going strictly by what a local or municipal tax assessor tells you might be a costly mistake. Lowering taxes on investment property is one of the ways that you can build your real estate wealth.
When preparing your property for sale, it is always best to have a fresh property appraisal. This provides you with the leverage you need to get a fair market price when selling your property. Real estate agents and buyers often produce price quotes and offers based on the actual market value. Knowing this value during the current year that you plan to sell you property is crucial to making the most money on the sale. A divorce, mortgage refinance, equity loan and estate planning are additional reasons to get an appraisal for one or more investment properties that you own.
How to Get an Appriasal for Your Invesment Property
There are generally two types of appraisers. The first are agents tha work exclusively with real estate agencies. These agents are licensed real estate agents that have years of experience in third party appraisals. These professionals have access to current and older data for neighborhoods and other homes in the vicinity where your property is located. The second type is an independent appraiser. These appraisers work independently and not through a real estate agency.
Licensure is required in many states and Florida uses residential or general appraisers that are independent. Contacting the appraiser of your choice can set up the appraisal and prices can be quoted. It is imortant to ask in advance what the appraisal includes and if extra reports are offered. The additional reports can compare the value of your investment property with others in the neighborhood and give a more accurate assessment of its value. If you live in the state where the appraisal takes places, you can be in attendance when the appraiser walks through your property. If you live out of state, the documents can be mailed to you along with the official signature and value set by the appraiser.