by Lane Duplechin | Property Values, Real Estate Expert
Appraisers select comparable properties, or “comps,” to help determine the value of a subject property. By analyzing the sale prices of similar properties, appraisers can estimate the market value of the subject property.
It’s crucial to take into consideration the most likely buyer for the subject property when selecting comps during the appraisal process. This means choosing properties that would appeal to the hypothetical buyer that the property is most likely to attract. For example, an appraiser working with a home in a retirement community should select comps that would appeal to other retirees. The ideal comps would have similar age restrictions, community features, and amenities. Comparing the property to homes that appeal to a different type of buyer, such as families with young children, could result in an inaccurate appraisal.
Here are some tips to determine the most likely buyer:
- Understand the local market: Every real estate market is different, and there are lots of various sub-markets within a given market. What is desirable for buyers in one market may not be in another. It’s important to understand the local market, including factors like neighborhood preferences, school districts, and the type of properties that are in high demand.
- Consider the property type: Different types of properties attract different types of buyers. For example, a single-family home is likely to attract families, while a condominium may be more attractive for first-time buyers or empty-nesters.
- Think about the property’s unique features: Every property is unique, and it’s important to consider the subject property’s unique features. Features such as a backyard pool, a large garage, water frontage, or large acreage may appeal to specific buyers. It’s also important to note that not all unique features are created equal. Some features can significantly affect the value of a property. Others may have less impact on the value of the property.
It can be more challenging to determine the most likely buyer for properties that are unique or unconventional. In these cases, the appraiser may need to widen their search to include properties that are not an exact match but have similar features or characteristics. He or she may need to rely on specialized knowledge and experience to identify the most relevant comparable sales and make adjustments for differences in functional utility.
In conclusion, the selection of comparable properties is a critical component of the appraisal process that requires careful consideration of the most likely buyer for the subject property. This ensures buyers and sellers receive accurate valuations and that real estate agents can make informed decisions.
by Lane Duplechin | Successions
An appraisal is often needed for succession purposes to determine the fair market value of a loved one’s property. This is necessary for estate settlement and inheritance purposes. This is important because the value of the property may be used to determine the distribution of assets to beneficiaries, the calculation of estate taxes, and other legal matters related to the transfer of property ownership.
Timing is important. The appraisal should reflect the value of the property as of the date your family member passed away. This is known as the “date of death value”. Any changes that occurred between the date of death and the appraisal date, such as the physical condition of the property, should be kept in mind.
It’s important to choose a professional appraiser with experience and knowledge of appraisals for succession purposes. At Acadiana Appraisals & Consulting, we understand that handling the estate of a loved one can be an emotional process. Our chief appraiser, Lane Duplechin, has many years of experience completing succession appraisals using various data sources and analysis methods to produce detailed and easy-to-understand appraisal reports.
In conclusion, obtaining a succession appraisal can be an important part of settling the estate of a loved one. Contact us at Acadiana Appraisals & Consulting to learn more about how we can help you with your succession appraisal needs.
by Lane Duplechin | Market Update, Property Values, Real Estate Expert
Check out our snapshots of residential sales data across the Acadiana parishes for the month of January.
Overall, sales volumes fell in comparison in last month. Average and median sales prices are trending lower again this month. The sales to list ratio is widening as sellers are lowering prices. Properties are staying on the market a little longer.
by Lane Duplechin | Property Values, Real Estate Expert
In some areas, data collectors are hired by appraisal management companies (AMCs) to complete the home/site visit. These data collectors are not certified appraisers. Background checks and adherence to strict professional and ethical standards are required for appraisers. At this time, the same does not apply for data collectors.
Check out the article from the National Association of REALTORS to learn more about what’s changed in the data collection process for appraisals.
https://www.nar.realtor/appraisal-valuation/appraisal-data-collectors-what-you-should-know
by Lane Duplechin | For Sale by Owner, Property Values, Real Estate Expert
An appraisal may be just what you need to get that property sold QUICK while still maximizing your PROFIT! Overpricing (and underpricing) can be risky!
The Acadiana real estate market has seen massive changes over the past few months. Appraisers study the market closely and can provide valuable information for your specific property.
New listings get lots of attention in the beginning. Potential buyers tend to ignore properties priced too high.
“Zestimates” and other online pricing tools have proven time and time again to be inaccurate.
A buyer’s mortgage lender will likely require its own appraisal after a contract price has been negotiated. If the property appraises for less than the contract price, the deal may fall through or additional negotiations may be needed.
Appraisals can serve as a great marketing tools. Buyers value an unbiased third party’s opinion.
A private appraisal is confidential. As the client, you may chose whether or not to disclose the details of the appraisal. You will feel more confident during price negotiations knowing how the market values your property.
An appraisal is a one-time investment that can pay big dividends!
Let us know if you have any questions or would like to schedule an appointment for an appraisal of your home or property!
by Lane Duplechin | Property Values, Real Estate Expert, Uncategorized
Parish and city property tax statements for 2022 were recently sent out. A nice little present for homeowners as we enter this holiday season! Ba-humbug! 😂
Property taxes are calculated by the local assessor’s office. There are several factors that go into the calculation. Check out https://lafayetteassessor.com/Home/Topics to get more details on the actual calculations. One of the primary drivers, though, is the property’s assessed value. This value is determined by a process called an assessment.
An assessment and an appraisal may be easily confused. Both are used to measure a property’s value. Each has a different intended use (or, purpose). Assessments are primarily for tax purposes. Real estate appraisals are used to determine the property’s appraised value. The appraised value is typically reflects the fair market value, or the amount a reasonable buyer might expect to pay for the property, at a specific point in time.
Typically, the appraisal process is more detailed and in-depth than an assessment. An appraiser closely evaluates the subject property’s unique condition, amenities, market, and location. When possible, the appraiser visits the house or property in person to get a thorough view of the specific property. The in-depth analysis and understanding of the unique property allow the appraiser to closely compare, or contrast, the property to others nearby.
Assessments estimate the property’s value. According to the Lafayette Parish Assessor’s website, real estate data and computer assisted mass appraisal programs are utilized to value properties. These type of computer generated valuation tools can be useful when ballpark estimates are need for thousands of properties. The models can have their downfalls (ask Zillow https://www.wsj.com/articles/zillow-offers-real-estate-algorithm-homes-ibuyer-11637159261), but we’ll leave that topic for another post.
The timing of assessments are also an important consideration. The real estate market and property values are constantly changing. The fair market value of a property today will most likely be different a few months from now. The Lafayette Parish Assessor’s website states assessed values must be updated at least every four years but may be updated yearly. It’s important to keep in mind the assessed values have the potential to be dated by several months or even years.
The local tax assessor websites have easy to use search tools. The links to local websites are provided below. Homeowners can see the assessed market value assigned to their property. It is important to keep in mind the value is just an estimate for tax purposes. Important real estate or financial decisions should not be based solely on the assessed market value assigned. There is only a need to act if you have reason to believe the “assessed market value” is HIGHER than the fair market value of the property. A higher value could mean you are paying too much in property taxes. If you do suspect your property’s assessed value is too high, the assessor’s office can provide steps to request a re-evaluation. Documentation such as an appraisal from a certified appraiser may be required as evidence. Our office can assist with this request.
Lafayette Parish: https://lafayetteassessor.com/
Vermilion Parish: http://vermilionassessor.org/
St. Landry Parish: https://www.stlandryassessor.org/Search
Iberia Parish: https://www.iberiaassessor.org/
St. Martin Parish: https://www.stmartinassessor.org/
Acadia Parish: https://www.acadiaassessor.org/
