Los Angeles Home Appraisers - Estate, Property, & Home Appraisal
There are several types of values associated with the home appraisal process in Los Angeles. First is the market price. The market price is the price for which the assets would trade in a Walrasian auction. A Walrasian auction, first introduced by Mr. Leon Walras, is a kind of auction in which each agent involved simultaneously calculates the demand for the specific good at every possible price. Therefore, a Walrasian acution mimics a perfect supply and demand curve. The market value of a property appraisal, in Los Angeles and throughout the United States, is interchangeable with the terms open market value and fair value.
The second type of value is called use value. In Los Angeles, home appraisers typically don’t focus on use value because it is specific to an individual party. The use value is equal to the value for one user, and may be above or below the market value. A third type is the investment value. This is equal to the value of one specific investor, and therefore may or may not be above the market value of a property. The specific definition is the value of an asset to an owner or prospective owner of the property. The fourth value is insurable value. For estate appraisal in Los Angeles, this equates to the real value of the property as covered by an insurance policy. Generally, the insurable value does not include the value of the site.
The last value is liquidation value. The value may be calculated as an orderly liquidation or a forced liquidation, and is typically analyzed in the bankruptcy process. The liquidation value assumes that a seller is compelled to sell the property, typically after an exposure time period less than a typical market time frame. These value numbers are important; however a Los Angeles home appraiser needs to compare value with price, as price is the more determinant factor when it comes to the profession. Value represents what the property is actually worth, but price is the cost to buy it. The price paid might not necessarily represent the property’s actual market value, but the goal for an appraiser is to try and get as close as possible in order to provide an accurate appraisal.