Pearland Texas Real Estate Appraisals

Comparables are typically those which a homebuyer would consider instead of the Subject, meaning they should be similar in marketability. The appraised value is heavily based on the sales comparison approach for most residential properties, deeming comparable sales determination a vital aspect of the appraisal. Many hours are spent by a house appraiser searching for and evaluating all potential comparables to calculate those which are the most reliable indicators of a comparable sale.

Fair market value is frequently defined in real estate as the closing of a sale in which both parties are motivated and adequately knowledgeable and the home has had expected exposure to the market.

A frequent misunderstanding is that an appraisal value is derived from living area and that the market value can be determined by sq. ft. multiplied by price per sq. ft.. Though it is possible to extract a price per sqft on the Subject AFTER the estimate of sales price has been determined, it is not a predominant benchmark of value. As such, price per square foot is a lagging index that can only be determined AFTER the appraisal has been completed. An often occurring situation where price per sqft may not work would be small homes that have elaborate updates or external features such as pools.