Why Property Valuation is Important
Property valuation is a key concept in real estate investing. If you don’t know the value of an investment property, you won’t know what rental amount to charge, or how much to pay in yearly taxes. Estimating these two figures, along with others such as property insurance, is not possible without knowing a property’s value.
Appraisal Methodology, Analysis, and Reporting
So, how do you find out a property’s value? The answer is through a home appraisal. A home appraisal is a professional opinion about the value of a real estate asset at a specific point in time. An appraiser is a professional who evaluates a property’s value. The value of a rental property is known as its fair market value. Market conditions, location, and a variety of other factors influence fair market value.
To garner a precise appraisal, MGNI employs processes which include – but are not limited to – the following:
- Published Source
- Potential Income Factors
- Comparative Market Analysis
- Potential Depreciation Factors
- MGNI’s Combined Know-how
- Benchmarking with associated brokerage firms
- Data extracted from previous, comparable sales
- Personal surveys and interviews with market participants