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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.
In fact, one of the biggest dangers is that widespread reliance on appraisal waivers is contributing to what some call “data cancer”a systemic problem that degrades the accuracy of real estate valuations over time. This could lead to price reductions, longer time on the market, or even losing a sale altogether.
Market data about the area, an invitation to an upcoming open house, or info about a coming soon listing nearby are all great items of value. Don’t forget to include your contact information and a call to action such as: “Call/text me to learn about your home’s current marketvalue.” Who’s it for? Who’s it for?
It’s also the appraiser’s job to develop an opinion on a home’s fair marketvalue, and just because the buyer and seller have agreed on a price doesn’t mean that’s the true value of the property, said Francois Gregoire, broker, appraiser, instructor, and president of Gregoire & Gregoire Inc.,
Value is defined in the Uniform Standards of Professional Appraisal Practice (USPAP) as: “The monetary relationship between properties and those who buy, sell, or use those properties, expressed as an opinion of the worth of a property at a given time. Unlike value, price is not an opinion. What is Sale Price? It is a fact.
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