Market Value Analysis Of Local Real Estate Broker

This approach, like the name implies, entails comparing your property to the sale of comparable properties in your market area. Adjusting for differences (such as numbers of bathrooms) by adding (or subtracting) the approximate value of the differences to the sale price, you can get an indication of what your property might sell for.

(3) How would you evaluate the Revere Street property? What are the risks and rewards, financials, and renovation issues;

is the value of the property as an investment, and therefore is also the most probable selling price.

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

The Valuation is prepared on the assumption that the Lender as referred to in the valuation report (and no other) may rely on the valuation for mortgage finance purposes and the Lender has complied with its own lending guidelines as well as prudent finance industry lending practices, and has considered all prudent aspects of credit risk for any potential borrower including the borrowers ability to service and repay any mortgage loan. Further, the valuation is prepared on the assumption that the Lender is providing mortgage financing at a conservative and prudent loan to value ratio (LVR). The valuer accepts no liability whatsoever if prudent lending practices fail to be strictly observed and/or if the lender relies solely on this valuation, and no other criteria, to advance loan

In this crazy world, it is important to find those who you can depend on- in life, in love, and especially in real estate. Finding the right group of people to network with and collaborate with is key to finding success in this field. In analyst Jonathan Littman’s article, “Real Estate Reinvented,” Littman documents information that he researched on Northern California’s Alain Pinel Realtors. An Alain Pinel Partner and the company’s President, Helen Pastorino, states that “ [she] believe[s] that the ‘every agent for himself’ hurts sales and [she has] quickly turned to using computers and networking to [her] advantage” (Littman). A successful real estate agent will not be afraid to collaborate and work with others, because he/she knows that

Determining the property value of mortgaged properties should be looked at from a different angle. Do not consider interest that has been paid as part of the value. If ever, consider it only for the future value if it will be reasonable or not for appraisal. Real estate investors should only consider the value that the property has and to be flipped within a short

The definition of fair value market value is the price at which the property would change hands between a willing buyer and willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of all relevant facts.

At 30 June 2014, the balance of the revaluation surplus is $400 000, of which $300 000 relates to the factory land and $100 000 to the buildings. On this same date, independent valuations of the land and building are obtained. In relation to the above assets, the assessed fair values at 30 June 2014 are:

The real estate appraisal process is a process that affects nearly everyone who lives in a home. Most people do not have the funding to purchase a home outright and must rely on financing to purchase their homes. Banks require that a real estate appraisal be conducted to determine what the market value of a property is so they know how much the property is worth as collateral for the loan. Therefore the appraisal serves as the basis for factors such as determining a fair market price, how much collateral a property can offer a lender, or in some cases even how much a property should be able to earn in income in a "best use" scenario. This report will outline the basic steps of evaluating the value of property as well as discuss some of the considerations surrounding the appraisal process in general.

When evaluating a property 's value, appraisers note the details of the property and surrounding area, such as a view or noise factor. They also consider the overall condition of the property, including the foundation and roof. They must determine whether any renovations have been done. Appraisers photograph the outside of the home and some of the interior features. This gives them the ability to determine the condition. They compare the property to other comparable ones by analyzing lease records and previous appraisals. Appraisers record their findings and observations before

In order to answer this question we first have to consider whether the value provided to the commercial and residential markets is the same. While it may look like the value is similar, upon closer inspection, we can identify an important distinction between the values provided to the two markets:

Automated valuation models (AVM) according to the RICS AVM Standards working group are systems that use one or more mathematical techniques to provide an estimate of the value of a specified property at a specified date, accompanied by a measure of confidence in the accuracy of the result, without human intervention post-initiation. They combine property sales data, property attributes data as well as local market information (RICS 2013, Corelogic (n.d)); these form the variables that are fed into the model. Models typically comprise one dependent variable which is the estimated property value and several independent variables (property attributes data) which take turns in explaining the dependent variable (RICS, 2013). AVMs vary depending on the modelling technique adopted, the methodology and independent variables adopted. Choice is solely down to the provider’s specification (RICS, 2013). Examples of the different models include; multiple regression model, indexation, sales comparison models and automated comparable selection and artificial neural networks. AVMs have been around for a while. However, market acceptance has been slow, tentative and somewhat phased.

A logical place to begin the analysis is with the appropriateness of the acquisition price. Are the asset values sufficient to support the loan? Is the buyer overpaying?

A syndicated loan is where a group of banks lend money to the borrower on a single loan agreement, each of these banks lend to the borrower in accordance to the agreement. When a syndicated loan agreement is negotiated, borrower agrees, on a limitation clause which may, terminate the credit facility if there is any deterioration in the position of the borrower, which is material to the lender and the agreement. This clause maybe called as the Material Adverse Change or Material Adverse Event Clauses. The main use of these clauses is to protect the interest of the lender at different stages of the agreement from making an unprofitable and loss making deal.