Home, Property, Estate Appraisal In Los Angeles
When completing a home appraisal in Los Angeles, there are three main approaches that the appraiser can choose from to determine a property’s value. Certain approaches are more applicable for different types of property, however it is prudent to study all three in order to be able to provide a big picture estimate of the property in question.
The first method available to our staff of Los Angeles home appraisers is the replacement cost method. In this case, the appraiser uses the information of local construction costs and costs of labor to estimate how much it would be to replace the property. This method of property appraisal, especially in Los Angeles, isn’t used as often as the others, and typically represents the maximum value that a home can sell for.
The second method of estate appraisal used in Los Angeles is the method of analyzing comparable sales. When using this approach, the appraiser is responsible for discovering what the price of a comparable, substitute property might be. In this method, the Los Angeles home appraiser recognizes that a normal buyer will weigh other asking prices of houses in similar areas and of similar builds. The idea is to calculate adjustments for the date of sale, style, location, amenities, size, and so forth in an attempt to create a price than can apply to a similar home. The Los Angeles home appraisers then pick a value they consider to be an overall projection of these facts.
The third and final approach is the income approach. This is where the value of investment and commercial properties, such as a condo or rental home, is determined by the amount of income that the property generates. These income numbers are compared to other rental properties that reside in the area to create the most accurate value possible.