Charlotte Appraiser Explains the Market

Real estate appraisers Charlotte NC use recent sold comparable properties and make adjustments to those homes to make them similar to the subject property.

Here is a preferred list of residential appraisers

1. Valuation Experts, Inc.
www.valuation-expert.com 704-989-7283


1. Real Estate Appraisal - Introduction

The first step that the appraiser takes is to determine and discuss the scope of work with the potential client. The scope of work may include the appraiser measuring the property, or may not include measuring of the property. Other issues concerning the scope of work are: how much investigated work will the appraiser do, and to what extent? A appraisal can be done on any property type, whether it's a 1900's victorian, to a new home in a cookie cutter subdivision.

Next the Charlotte Appraiser will determine who the client is, and the intended use of the appraisal, and the intended user of the appraisal. The appraiser will have a contract for the client, and therefore will and can only discuss the appraisal results only to the client. If at the beginning of the appraisal process, the client instructed the appraiser to include other intended users, then and only then the appraiser can discuss with other individuals the appraisals results.

2. Why get a Real Estate Appraisal and What are the Benefits?

When real estate is appreciating, not much concern to the value of the property is taken into consideration. In these markets, buyers usually buy using more emotions, and wants, and they are not really concerned about the value of the property. Now that the markets are soft, and prices are declining in some areas, a real estate appraisal may help you from making a big financial mistake. A big misconception is that a home appraisal for a lending client, is for the benefit of the home buyer. This is simply untrue. The lender orders the appraisal for their sole benefit, not the buyer. The lender wants to know what the home is worth, so they can know how much to lend on, and determine the appropriate LTV.

What are Some of the Items that Add Value?

A Charlotte real estate appraiser will look at the entire structure, and property improvements to see if any contributory value is noted. For example, in some new subdivisions, there will be a 3,000 square foot home for $400,000, and another 3,000 square foot home for $300,000, and some home buyers and real estate agents do not understand why this can be. Real estate agents and buyers both like using the cost per square foot theory to compare and determine if the property that they are considering buying is within "ball park" range. The first home was sold for $133.00 a square foot, and the second home sold for $100.00 a square foot. By this example, one can easily see why one should not use the square foot method for determining property values. It is certainly OK to use this method as a starting point, and nothing more.

So why the huge difference in values for homes with the same square footage?

Homes in Charlotte vary in design, appeal, and quality of construction. These are the main culprits that make homes differ in price. In new construction subdivisions, prices will vary mainly do the cost to construction of the home, and the amount of upgrades of the home. The cost of construction includes the pitch of the roof; the amount of corners and out sets of the home; brick veneer front, part or whole; exterior detail, and trim work; height of ceilings, number of rooms, and bathrooms. Next, is the amount of interior upgrades. A home buyer must be careful when choosing interior upgrades. Interior upgrades can add value to your home or detract value from the home. It is also important to realize the price point of other homes in the neighborhood, and determine if the upgrades will support and make sense at the price point of the property that you are considering buying.

For example, if the median price range for the neighborhood is $200,000, it would probably not be benificail to add travertine tile in the kitchen, and all baths, and exotic imported Italian marble to the counter tops. Although it may be benifiacil to upgrade granite counters in the kitchen, and to add hardwood floors to the lower living area. The homeowner should take into consideration the price point of the neighborhood, consider the desirability of the area, and lastly make good upgrade selections

1. A appraiser Charlotte NC will consider the intended user and use.
2. A real estate appraiser Charlotte NC will discuss the scope of work with the potential clients.
3. Appraisers Charlotte NC will make a condition rating of the property that is being appraised.
4. An appraiser Charlotte NC will choose comparable sales that are substitute properties for the home being appraised.
5. Appraisers Charlotte North Carolina will take into consideration the quality of construction, condition, location, and size of both the property that is being appraised, and the selected sales.

Charlotte NC Housing Market

The Charlotte market has greatly improved within the past couple of months. Housing inventory has decreased, and sales have risen. Also, the continuation of the Home Buyers Tax Credit should further to stabilize the market. Experienced Charlotte appraisers should be studying the supply/demand of homes in the market area. Also, Charlotte NC appraisers should be looking at the amount of REO properties on the market. Normally, these types of sales should not be used as comparable properties. These types of sales are stigmatized by the market and the "condition of sale" has been affected. Real estate appraisers in Charlotte, NC, should only use REO sales if these types of sales are driving the market, and there is no distinct price difference between normal market sales and REO sales.