Current Issues in Real Estate Appraisals Can Impact Home Values

March 27, 2012 — 1,214 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

Sorting through the facts and myths of real estate appraisals can become challenging, but companies can review the pros and cons when considering options. Understanding factors that impact the housing market along with various real estate processes can help people make the best decisions for their organization.

Many real estate professionals consider a home's value when making an appraisal, but must review several factors to make a successful assessment. An agent may study the costs of other homes in the area, local and national sales trends and buyers' and sellers' interests.

Balancing these factors can become challenging when determining the fair value of a home. Real estate agents may face pressure from buyers and sellers that can impact a person's ability to sell property. In addition, home damage and repairs could play a role in a property's value.

As a result, agents may develop an appraisal process to ensure accurate evaluations of home values. An appraisal may include a property survey, data collection and a final review. Using these materials can help a real estate professional estimate a property's defined value.