Real Estate Appraisals Kinston North Carolina
A real estate appraisal helps to establish a property’s market value, which is the likely sales price it would bring if offered in an open and competitive real estate market.
Why a appraisal is needed in Kinston North Carolina?
- to determine real estate tax. Local governments impose taxes on homeowners based on the valuations offered by appraisers;
- to determine whether a home is sufficient collateral for a loan to be issued; and
- to give a seller or real estate agent a better idea of what sale price to list the house.
An appraisal is not performed to assess the safety of a home, however, as this duty is left to inspectors. Assessors might make notations about obvious safety issues that affect the home’s value, such as a crumbling foundation or an unstable deck, but homeowners should rely on InterNACHI inspectors, not appraisers, to help them determine the condition of their homes. Like inspectors, appraisers may be state-licensed, if they have taken certain coursework or received certain certifications, although some states require no certification or license — which is one more reason to hire InterNACHI inspectors, who are among the most educated and trained inspectors in the world.
Real estate appraisers will take one or more of the following three approaches when estimating property value:
- the cost approach, in which the appraiser estimates how much it would cost to replace the building if it were destroyed. This approach is most helpful for new properties, where the construction costs are better known;
- the sales comparison approach, in which the appraiser estimates a property’s value by comparing it to similar properties nearby that have recently sold; and
- the income approach, in which income-generating real estate is appraised based on the rent that it is expected to earn, as well as projected earned profit when the property is resold.
Appraisers determine which of these approaches to emphasize by considering the market for the property. For instance, small retail properties, which are often purchased by owner-users, are best appraised using the sales comparison approach, while office buildings, which are are typically purchased by investors, are best appraised using the income approach. These distinctions are rarely so clear-cut, however, as a single-family home might require some amount of the income approach if it is surrounded by rental properties. Once they have decided which perspectives are most appropriate, the appraiser will collect data, evaluate the neighborhood, verify legal descriptions of the property, note conditions and special features of the home, and perform other duties as they deem necessary to the house’s appropriate valuation.