Establishing an Accurate Site Evaluation 

Establishing an accurate value of a real estate property is crucial for several different reasons. It can affect taxation, property insurance, and even future financing. If the site is improperly valued, this can cause a plethora of problems in the long run. 

At times, this process can be a bit complicated, but it must be done accurately. Here are a few ways to establish an accurate site valuation. But first, what does the value of a real estate property encompass?

What Does Value Include?

The value of a real estate property is typically determined by the worth of benefits that come from owning the property. This value is not calculated overnight but over a number of years. In order to have an accurate value of the site, several factors must be taken into account. They must consider social and economic factors that may affect demand or environmental conditions. 

What factors help to Calculate Site Value?

Property Appraisal 

When appraising the property, the accuracy is dependent on the data collected about the property. Data will be collected about the city or neighborhood in which the property is located. Appraisers often look at the structure itself to help determine the value of a property. The age of the structure will be taken into account, as well as the condition of the building. They may ask questions such as:

• Is it structurally sound? 
• Are there cracks in the foundation? 
• Are there any repairs that need to be completed?

Once the physical well being of the structure has been examined, they will move onto any available financial records. This would include when the last sale was, and under what terms the sale was made.

Examining the Seller 

Although it may seem that the seller has little to do with establishing an accurate site value, this couldn’t be farther from the truth. Looking into the seller’s background can provide some insight that will help you reach a proper valuation. 

They will pay special attention to the seller’s track record. Keep an eye out for any violations or cited claims as this can also affect the value of the property. 

Performing a Market Analysis 

The goal of any appraisal is to determine the market value of a property, which is why it’s so important to perform an analysis of the current market. Some questions to keep in mind would be:

• How does your property compare to other listings on the market now? 
• What makes your property stand out? 
• What is the most probable price that this property will sell for?

Considering questions like these can help in properly valuing your property. 

The Bottom Line

Properly evaluated a site property affects all parties involved. Rushing through the evaluation process or skipping steps can cause your property to be valued improperly. Although these evaluations are performed by professionals, it benefits all to have a measure of knowledge about the proper methods for evaluation. Quinn & Associates is well versed in facilitating and reviewing site evaluations. If you are considering the purchase of purchase, give us a call today!