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At its core, real estate appraising involves the due diligence necessary to form a credible opinion of the marketvalue of a particular property. This requires a deep understanding of the appraiser’s local real estate market, as well as of the physical, legal, and economic factors that influence property values in it.
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Hours of research, project expenses and potential profit, getting contractors and permits lined up and trying to hold onto the wallet. Rookie investors make rookie mistakes; overpaying, underestimating repairs, poor projectmanagement, overestimating finished marketvalue and a thousand other things.
Let your clients know how the market will impact competition, home values, and the overall buying strategy. Review comparable sales: Show your clients how a comparative market analysis (CMA) will be used to help them make an offer and determine the fair marketvalue (FMV).
In addition to property-level cash flow, GPs typically charge fees (acquisition, asset management, disposition) and earn a promote or disproportionate share of profits once certain returns are met. Distinguishing between marketvalue and investment value is key to smart deal-making.
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