APPRAISALS AND ASSESSMENTS

Appraisal strengths and weaknesses,appraisal and mortgage,appraisal system assessments

While buying a house there is a lot of thing we have to take into account. Of that appraisers report is very important since the price of the property is being determined by this only. It is the estimated value given to the property by the appraiser. The assessment is the value given by the government for taxation purposes which is based according to their guide lines. Sometimes both vary so much that people gets taxed more.
Appraisers report is done in two ways. If it is an income producing property they calculate it according to the income generated by the property. Other way is calculating the value of building the same structure at the present time.
The appraiser values the property by comparison. He compares the property of similar type and then decides the value. Sometimes he takes the current land value, and calculate the building value if it were built now separately and then add them up to get the estimated value of the property.
Different people like the buyer, seller the money lender appoint different appraisers and each one will give one value according to his client’s requirement.

To overcome this they go for the assessment value which is fixed by the government for taxation purposes. Assessment values sometimes are more than the appraiser’s value, in that case the owner files in the court
In any case while selling a property the price will be fixed by the buyer and the seller. These are all basic things that are taken into account before fixing the price. If the buyer and the seller agree to a particular value of the property they can go ahead with their deal. It may be higher or lower than the assessment value.
Buying and selling is not in our hands. If we have luck our property will sell for a higher price and if we were the buyer we will get a property for a lower price.
Appraiser and Assessment officers are like mediators who guide us fix the value of the price. They both are completely different and hence their final verdict also differs.
In order to avoid taxation some people ask the assessor to give assessment for a low price. When it -comes to selling, the value will be low. So we go for an appraiser to give valid reasons to increase the value of the property. So he will increase the price by saying we have electricity, gas, kitchen cabinets etc; immaterial of in what condition they are, and increase the price of the property. If we are buying the appraiser will help us to reduce the price saying all these gadgets are not available. Final decision is the owners.