While many professionals in the real estate industry are willing to offer their opinion on a property’s value, not all estimates can be considered equal. Beware of informal estimates given by participants in the real estate industry or others with potential ulterior motives. While their advice can offer some insights, a designated appraiser can provide accurate, unbiased information backed with market data on which you can rest assured basing important financial decisions.
Sellers of real estate often provide rough price estimates, but these informal speculations are based on general knowledge and are not always supported by actual market data. This type of estimate is usually given solely for the purpose of establishing an appropriate listing price or offering a ballpark figure for how much a property might cost you to purchase. But the legitimacy of this estimate is debatable since the listing price of a property can vary significantly from the final selling price.
A designated appraiser, on the other hand, provides a market value estimate for a property based on extensive analysis, knowledge and market research. Their research process generates estimates that are formal, impartial and relate only to a specific date. Unlike the estimates a real estate participant might offer, certified appraisers strive to provide objective, fair and accurate appraisals using actual data and training. Appraisers are not swayed by the desire to offer the highest price or biased by potential commissions. Obtaining a certified appraisal is a crucial step in your real estate investment process and one which should always be left to professionals.