FAQ's

Frequently Asked Questions

  • What is an appraisal?
  • What is the appraiser’s job?
  • Why do you need a professional Appraisal?
  • Why do you need a home appraisal?
  • What is the difference between an appraisal and a comparative market analysis?

What is an appraisal?

An appraisal is a method leading to an opinion of value. This estimate is established through a precise process that usually uses the three common approaches to value. First is the cost approach – what it would cost to replace the improvements, less physical deterioration and other elements, plus the land value.
Second is the sales comparison approach – it includes making a comparison to other very much alike, neighboring properties which have recently sold. This is typically the most accurate and best indicator of the value of the residential property. The third is the income approach – the most important in estimating income-producing properties. This includes evaluating what an investor would pay based on the revenue produced by the property.

 

What is the appraiser’s job?

The job of the appraiser is to give his objective and unbiased opinion about the value of the property being appraised to help the owner or prospective owner of the property to be capable to make decisions to manage, sell, and/or land money on its security. The appraiser will collect statistics, facts, and other applicable information about the property that will assist the analysis to determine its true value on the market. He will deliver an accurate conclusion about the subject property in a timely and professional manner.Second is the sales comparison approach – it includes making a comparison to other very much alike, neighboring properties which have recently sold. This is typically the most accurate and best indicator of the value of the residential property. The third is the income approach – the most important in estimating income-producing properties. This includes evaluating what an investor would pay based on the revenue produced by the property.

 

Why do you need a professional appraisal?

Whenever the value of your home or other real estate property is being used to make an important financial decision, an appraisal is needed. If you are selling your home, the appraisal helps you establish the most appropriate value. If you’re buying, it protects you from overpaying. If you were going through an estate settlement or divorce, it ensures the property is divided fairly. Knowing the value of your home, which is often the largest financial asset, helps you make the right financial decisions.

 

Why do you need a home appraisal?

There are many reasons to seek an appraisal and these are the most common ones:

  • To determine a fair price once selling real estate
  • To provide a negotiating tool when purchasing real estate
  • For real estate mortgage transactions
  • To get the real potential income-generating value of the commercial property
  • To lower your tax burden
  • To establish the replacement cost of insurance
  • To contest property tax
  • To settle an estate
  • To protect your rights in a condemnation case
  • Because government agencies such as SAT requires it
  • If you are involved in a lawsuit

What is the difference between an appraisal and a comparative market analysis?

A comparative market analysis delivers a “ballpark figure” that depends on the vague market trends and is create it by a Real Estate agent who may or may not have a true grasp of the market valuation concepts and whose income is tied to the value of the home.
A professional appraisal relies on specific, verifiable comparable sales that include other factors like condition, location, and construction costs. An appraisal delivers a defensible and carefully documented opinion of value. It is created by a licensed, certified professional that is an independent voice with no vested interest in the value of the property.

Cabo Appraisals are the NUMBER 1 resource for homeowners, potential homeowners, investors, attorneys, notaries, and other Real Estate Professionals in the Los Cabos area.

Contact Us

+52-624-191-2709
info@caboappraisals.com

Camino Real 4115, PB Local B
El Medano
23453 Cabo San Lucas
Baja California Sur

Cabo Appraisals @ Copyright 2024 - All Rights Reserved

Scroll to Top