Tulsa Real Estate Agents | Anywhere in town
Hey tulsa real estate agents. Today we are going to talk about real estate appraisals. Why they’re important and we’re going to explain some important terms? The appraisal process can sometimes be frustrating for tulsa, real estate agents and their clients, because it’s our job to try to price unless the house close to what we feel would be the volume at the end of the day, the appraisal or the appraiser and has the ability to not have the ability, but the appraiser determines the volume and pretty much what they say goes try to get as close as possible to the market. Analysis, andit’s, not an appraisal. That is an alternative to an appraisal, and we also call that is cma and that helps the tulsa real estate agents to focus and properties that are similar to the property that they are listing. And some things that we look at are the size of the hound. The square footage, how many rooms are in the home? How many bedrooms? How many garages is the two car garage or a three-car garage? And then we we take that information based off of the location as well, and we want to make sure we’re using subject properties that are located in the same vicinity as our listing and from there we determine or help determine the value of the house. We want to get top dollar for a clients that we need to be realistic as wellso there’s some other process to you, what the appraiser does when they are doing appraisal and the first thing that the appraiser does is the identify the problem, and then they determine the scope of work and they’re going to gather a lot of information. That’s going to be necessary, such as you know, general data would be. Where is the city located in or not city, but where is the property located? What city? What neighborhood and then they’re going to take specific data, such as their comparisons or the subject properties? Are there any improvements in the subject properties and then going to look at they’re, going to look at cells, data and they’re going to look at cost data and expenses and income after they collect all of their data? They’re going to analyze it and form an opinion based on the land, value form, independent opinion of value. There’s going to be three different approaches that they’re going to use and we will definitely go over those but after they whateverroach they use then they’re going to reconcile the values in order to give their final opinion, and then they give the final report once they do. The final report that goes to the lender, the lender will always notify the client and I’m return, notify tulsa real estate agents so that they know whether the value is come back at the price that we’re hoping that the price we’re hoping it does. So in order to have value in real estate, there has to be the man utility transfer ability and scarcitywithout those for then we can’t we cannot determine the value, there’s going to be a market value which is probably most probably the most probable price, that a property should bring in being that it’s competitive and it’s an open market and there’s some basic principles of value, and some of those principles are anticipation and change competition. Whether there was any contribution or conformity and the highest and best use of the property, those are the basic principlessomething that tells the real estate agents need to know, especially for the real estate. Exam is what plottage means and plottage just means that for an example, if you have two properties that one property is valued at, the other properties is also valued at 30000. If you take those two properties and you combine them and sell them, together. You’re actually increases for an example. The 230 together would increase to maybe 90 thousand, so plottage is going to give you more as a value, there’s also regression and progression, and this is just a basic principle that if a neighborhood has a modest home-and you have some other properties that are not as smart as they could be smaller, it’s going to show some regression in the value and progression would just be the opposite opposite of thatthe number. One approach used in the appraisal system is the sales comparison approach. It’s also known as the market data approach, which is very comparable to whatever tulsa real estate agents are going to use as a cma in order to determine the value, has there’s no two properties in real estate, that are exactly alike, and the reason they’re not exactly like is because the land is going to be different and they’re always going to be in different locations. Even if you have a home where the same exact floor plan. So the sales comparison approach is wanting to be very similar to substitution so that they can compare the property to separate properties. The next approach is going to be the cost approach, and this is definitely for special properties and it also use the substitution but they’re, focusing more on properties that are hard to find, like churches or properties in rural areaan. Awesome. New construction is going to use the cost approach in order to determine the volume and I’m also tulsa real estate agents need to keep in mind that land, the price of land is never going to depreciate the building on the way and will depreciate that, when determining value land never depreciates. So you can’t consider that a factor in depreciation which depreciation just means that you are losing value for whatever reason that they meet some of those reasons could be the physical deterioration or external obsolescence or functional obsolescence and functional obsolescence just means thatcherry blossom value from a markets response, so how the market is responding to someone house has been listed for 8 months and their markets just not responding as no one’s buying, so they’re going to have functional obsolescence.
In that situation, external obsolescence is depreciation. The depreciation that’s caused by negative factors in the surrounding area, so it could be that the city does build a power plant, two blocks from your house, and you could see it from the view of your living room window. That’s going to depreciate your property because most people are not going to want to have a view of a power plant. The physical deterioration is just exactly what it is. The house is falling apart. It needs a new roof and needs new paint. Siding is falling up the house so talk to real estate agents need to be aware of. You know how to explain the different types of depreciation on propertiesthe last approach that appraisers will use, is the income approach and the income approach and deals with commercial, and it does not deal with the residential side of things, and you know when you’re dealing with commercial you’re going to be dealing with at businesses who you are paying rent and something that tells the real estate agents need to know when they take the test, as they need to understand what gross, where are gross income multiplier czar, and how to calculate that. So the gross rent multiplier is just based on the monthly rental in that could be used for to determine the value and-and you multiply, that by the annual income, the monthly x. The annual so keep points just going over real quickly. We went over the appraisal process and what appraisers are looking for in the different types of approaches at tulsa, real estate agents use the cma mark, which is the comparative market analysis report when we’re listing homes, and we explain to our clients that we are trying to view this. The appraisers perspective as much as possible. We are not here to tell the client where they what they should price their house, because the seller is responsible for that, and our job is just to educate the seller as much as possible and give them the information to base their own decision a lot of times when they realize all these properties are not selling. Next to us, then you know, because of whatever reason we may need to go ahead and lower the price it’s. Just sometimes you know, seller staying fit. Their house is worth more money than what it really truly is. We talked about the different approaches other than the cma there’s also a broker’s price opinion approach that can be used as it’s it’s not as in detail as the comparative market analysis. But it’s something if you’re just wanting something really quick will use the bpo. We talked about what value is and how it’s created value of created. By again, it’s simply demand scarcity, utility and transferability and those for items you know, create value on a property, and if you like, one of those for items, you are going to lock value on your property Tulsa Real Estate Agents