In real estate appraisals, an Extraordinary Assumption is made when an appraiser must rely on uncertain information to proceed, like assuming an inaccessible unit in a building is similar to the others. A Hypothetical Assumption is made when an appraiser treats a condition that is contrary to fact as true for the purpose of analysis, […]
Understanding the low home appraisal reasons is crucial for homeowners considering refinancing their mortgages. If you’ve jumped on the refinance bandwagon, you might be surprised to learn that your home’s appraisal could come in lower than expected. With interest rates at record lows, many homeowners are eager to take advantage of refinancing opportunities. However, when
Transitional properties hold immense hidden value for real estate investors and appraisers. These properties, often overlooked or undervalued, have the potential to generate substantial returns when their highest and best use is identified. Understanding the core principles behind transitional properties, including legal, physical, and financial feasibility, is key to maximizing their value. A transitional property
A residential appraisal report provides more than just a single final number; it offers a comprehensive analysis using three key methods to establish a “range of value.” The most important method is the Sales Comparison Approach, where an appraiser adjusts the sale prices of similar properties (“comps”) to account for differences. The Cost Approach (estimating
Written in mid-2020, this article explains that the COVID-19 pandemic prompted the Federal Reserve to cut interest rates, leading to historically low mortgage rates. This is expected to fuel a strong rebound in the housing market after a brief spring slump in sales volume. Despite the lockdown, home prices remained stable or even increased. The
An estate appraisal, also known as a “date-of-death” appraisal, is essential for settling an estate in Massachusetts. This is a retroactive valuation where a professional appraiser determines the property’s fair market value as of the date the owner died, not the date of the inspection. This unbiased, defensible report is legally required by the probate
Market Value is the most common goal of an appraisal, but it’s an opinion of value, not a fixed price or fact. It’s based on a specific set of theoretical conditions, including a well-informed buyer and seller acting without duress and the property having reasonable market exposure. Because real-life sales don’t always meet these conditions
In a stabilizing real estate market, a formal appraisal is a critical tool for income property investors to evaluate their equity position and decide on the most profitable exit strategy. While investors can get a rough estimate of value using the Income Approach (NOI / Cap Rate), a professional appraisal provides the certainty needed to
Since 2015, Boston has repeatedly tried to pass “just cause eviction” laws to protect tenants amid soaring rents and redevelopment, but these efforts have consistently failed in the state legislature due to strong opposition from landlords who view them as a first step toward reenacting rent control (which was banned in MA in 1994). The
An “Appraisal Review” is an opinion on the quality of another appraiser’s work (e.g., its accuracy and compliance). An “Appraisal” is an opinion of a property’s value. The key difference is the subject of the assignment: the appraiser’s work vs. the property. However, a review becomes an appraisal the moment the review appraiser provides their
