Houston Investment Property Appraisals
Real Estate Investment Appraisals In Houston Texas
As a real estate investor you need a reliable and accurate source of valuation services that extend beyond those offered by typical residential appraisal firm. The appraisers at Houston Appraisal Company have the experience and expertise needed to provide such services for Residential or Commercial properties at highly competitive rates.
We understand that these types of valuations are usually not only concerned with Fair Market Value derived through comparable sales, but also valuation based on various other appraisal techniques such as the income approach, gross rent multipliers, capitalization rates and more. In short, investment property appraisals look at a broader picture with regards to value including potential for income generation.
Portfolio Evaluation
Aside from purchasing property investors often use appraisals to determine the amount of appreciation their real property investments have accrued. This provides an updated view of your portfolio.
Rent Analysis
Another common use for an appraisal is to ensure that your current rents are inline with market rent. When property values go up or down, rents will usually follow, but unique features of properties must be taken into account.
Property Tax Appeal
One of the biggest overhead that real estate investors deal with is property taxes. Unfortunately, in Texas the county can raise real estate tax valuations on any property by as much as they want. An accurate and up-to-date appraisal can assist you in proving the true value of your property to the county appraisal district.
Sale Of A Property
While it is common in Texas for the buying party to engage their own appraisal firm, with more complex properties it is often best for all parties to obtain their own appraisal. The accuracy of an appraisal for an investment property requires that the performing appraiser be well versed in replacement costs, gross monthly rent multipliers, cash reserves, operating income analysis, rental analysis and more.
Other common reasons for ordering an appraisal for an investment property include divorce, refinancing, equity loan and estate planning.
Frequently Asked Questions
GRM or Gross Monthly Rent Multiplier is a calculation used to determine a market valued based on the calculation of Sales Price / Potential Gross Income. The GRM is useful whenever you want to quickly compare income producing properties in a rather homogeneous area. As a simple calculation it does have its disadvantages since it does not take into account all factors that would influence value.
Cap rate for real estate is similar to GMRM but in reverse and using Net instead of Gross income. The formula looks like this Net Operating Income / Sales Price). Unlike GRM the cap rate brings operating expenses into the equation but it still has its disadvantages which could lead to inaccuracies due to unaccounted expenses.
A rental analysis is typically performed as a separate addendum to a real estate appraisal. Recently rented properties, that are similar to the Subject, are compared and adjustments made to their rental prices based on their differences. These adjusted rental prices are reconciled into one value as Market Rent.
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#1 Independent Home Appraisers In Houston
We’ve Worked with Real Estate Professionals and Private Clients Throughout the Greater Houston Area Since 2005. Since Then We’ve Become One of the Highest Rated Independent Real Estate Appraisal Firms in Houston Based on Actual Customer Reviews.
Our Reviews Speak for Themselves!
Rated 5/5 based on 7 customer reviews
David N.
“I’ve used this company several times for appraisal work I had in the Houston area. I chose them initially because they are very competitively priced but I continue to use them because their service is top notch.”
Martin M.
“Appraiser came out and did his thing. Received my appraisal in the time quoted. Value seemed reasonable. I’d really recommend them or use them again if ever needed.”
Jim M.
“I needed an appraisal for a property we own in the Memorial area. Our appraiser was professional, courteous, thorough, and helpful. Documentation that was provided following his appraisal was complete and showed significant attention to detail. I didn’t meet him personally but was told the appraisal was friendly and personable as well.”
Matthew G.
“They came out quickly. Super friendly and professional. Lots of follow up and answered any questions I had. All in all I would definitely recommend.”
Matt H.
“The appraiser completed a pre and post-flood appraisal for our home that was flooded. He was very thorough and a pleasure to work with. I would highly recommend!”
Daniella W.
“They were fast and not too expensive. Gave us a good value for my momma’s home.”
Hastings L.
“Our client was very happy with the appraisal report and the process. A+ service!”
