April 18, 2024

Real estate estimators – we explore the features and nuances of professional services.

9 min read
construction estimating services

An assessment of the market value of the real estate is usually carried out when concluding a purchase/sale transaction, rental, or mortgage. When assessing real estate of any type, our company’s specialists use modern tools and always apply an individual approach. Our company’s employees assess real estate for objects such as houses, apartments, cottages, shopping centres, commercial premises, production workshops, warehouses, and land plots. Today, the service of determining the market value of real estate is regulated by current legislation. Therefore, the assessment should be trusted only by qualified experts who will provide reports and conclusions accepted by the courts and other supervisory and government bodies as official documents after performing professional work.

Why do you need a real estate estimate?

Carrying out such an expert service is necessary to accurately determine what the actual price of the property is, depending on what the assessment is being performed for. It is necessary to establish the market value of real estate so that if it is sold or used as collateral when obtaining a loan, you can maintain funds and recover financially. Real estate estimators is carried out today by our experts both to find out what its market value will be and to establish the liquidation or cadastral value of the property.

Who conducts real estate estimates, and how is it done?

Only specialists with appropriate qualifications and many years of practical experience can determine how much an apartment or any other piece of real estate costs. Employees of our company, when determining the market value of real estate, always rely on the current legislation and the latest amendments to it. Employees also carefully examine the regional market because market value is a reliable guide to determining how much real estate is worth.

The procedure for assessing the value of a variety of real estate objects includes the following sequential stages of work:

1 specialists request from the customer of the real estate assessment all title documents, as well as other documentation that allows them to establish the presence of debts or encumbrances that can significantly affect the final value of the property;

2 after examining the provided documentation, company employees go to the site, where they conduct a visual assessment of the facility using professional equipment and tools;

3 Upon completion of the work, the experts draw up a detailed and detailed assessment report, which describes all the reasons for the conclusions and conclusions made. This assessment report is provided to the customer in both printed and electronic form.

Considering that any individual situation is individual, and an apartment or commercial property has its own parameters, design, technical condition and architecture, assessment services are also provided individually.

What types of estimators are there?

There are four main ways to estimate the value of an object, each of which has its characteristics:

  • Market. This cost refers to the price of selling the property on the regional market. It is this value that today guides sellers and buyers who deal with real estate on a professional level or who want to sell their property. To establish the market value as accurately as possible, our company’s employees search for similar objects, compare them according to technical and other parameters, and then calculate the average market value. Market value is set taking into account market conditions and is the most common method used by our company employees in cooperation with service customers.
  • Liquidation. This value of the object means the price of real estate at which it can be sold as quickly as possible. For the price of an individual object to be calculated as accurately as possible, professional appraisers take into account the exposure period of 3-4 months. Liquidation value is usually always less than market value and is usually about 75-80% of market prices. When assessing the liquidation value of real estate, extraordinary circumstances are taken into account that may force the owner of the property to sell it on terms that do not correspond to those established on the market.
  • Investment. The investment value of an object is considered to be the price set for real estate with certain investment purposes for a specific person or group of interested parties. Most often, this cost of real estate is used to determine whether the property will be profitable if funds are invested in its purchase and subsequently used for rental or other purposes. Unlike the liquidation value, the investment value will always be greater than the market value because it takes into account the prospect of making a profit from a given object. Suppose the investment price of residential, commercial, or industrial real estate is less than the market price. In that case, it means that an ineffective plan has been chosen for selling or renting it out, so it will be possible to sell it at the market price. Investment value is the value for which an object can be sold to obtain further benefits.
  • Cadastral. The cadastral value is the amount that was established during the state assessment by professional experts. This price is determined by mass estimators, and if such a procedure is impossible, then individual real estate or other property is valued. Specialists carry out cadastral value assessments to determine the level of taxation and establish the replacement price. Replacement cost is usually the amount required to construct a similar facility under the same conditions. When estimating replacement costs, workers’ wages, the price of construction materials and projects, and other financial costs are taken into account.

As you can see, the goals of evaluating various real estate properties can be very different, and you can decide in which direction the work should be done in close cooperation with the specialists of our professional construction estimating company.

Estimators’ methods – how is value calculated?

The exact cost of estimators is determined today using three main methods used by specialists: 

Comparative. The central thesis of this approach is that the buyer will only pay for an apartment or other real estate the amount claimed for the same properties on the regional market. 

Using this assessment method involves the following steps:

  • selecting a unit for comparison with similar properties;
  • adjustment of results depending on the characteristics of the object chosen for comparison and analogies;
  • agreement on the results of the adjustment.

The comparative estimator’s method is the most labour-intensive. It requires more materials, information, and various calculations for several objects, but it allows you to determine as accurately as possible how much real estate will cost. 

Profitable. The essence of this method is that the estimators and analysis of real estate is carried out, taking into account future income from it. When using this approach, professional appraisers consider and take into account all possible risks associated with real estate in a given region. 

Expensive. The essence of this method is quite simple because, during the assessment of the object, the amount that must be allocated for construction and operation is determined. This method is most often used in cases where it is necessary to evaluate real estate without separating them from the land plots on which they will be built. When using the cost approach, experts perform:

  • assessment of the market value of the territory;
  • replacement price of the object;
  • assessment of identified types of wear;
  • calculation of the final price of the object.

The most accurate assessment figure is achieved in cases where experts use all three methods at once and take into account all the results obtained.

What affects the cost?

Although many factors are associated with the value of real estate, the main criteria and guidelines for experts are:

  • the situation in the regional real estate market;
  • seasonality;
  • object location;
  • infrastructure development;
  • degree of wear and technical condition of the building;
  • material of walls and building frame;
  • the environmental situation in the region;
  • the presence of balconies and loggias;
  • features of the local area;
  • other parameters.

What documents are needed to estimate a home?

For our specialists to do the job of assessing the cost of an apartment as efficiently as possible, they will need the following documents:

  • BTI technical passport;
  • certificate of state registration of the apartment; 
  • passport of the customer of the service and other documents.

The assessment of the cost of any apartment is carried out not only concerning the technical condition of the object but also taking into account the fact that it is necessary to determine the price of this object accurately. The cost of appraising apartments depends on many factors, but in any case, it remains affordable for most customers.

Can I do the assessment myself?

The assessment of an apartment or any other real estate can be carried out either with the involvement of specialists or independently. Usually, during an independent procedure, home or plot owners use a comparative approach, analysing the market situation and comparing similar properties with their own. Even if the property owner conducts a home assessment independently, the results are unlikely to be used as official legal documents when collaborating with banks, insurance companies, or government agencies. Self-assessment can be performed only for personal purposes because in order to conduct a professional examination, a specialist must have the appropriate education, membership in an SRO, and insurance.

Why is real estate estimate carried out?

The main situations in which such a specialized construction estimating services from specialists is required are the following.

  • Litigation. Such court hearings may consider cases of sale of objects at a significantly inflated value or cases of inheritance when the heir needs to pay specific compensation to take possession of the property.
  • Registration of a mortgage. In this case, the expert procedure allows you to accurately calculate exactly how much a person who takes out a mortgage on housing or commercial real estate must pay. In this case, the bank takes into account the market and liquidation value, settling on the lower one.
  • Company reorganization. Examination and research are carried out in this case to determine the organization’s assets. All movable and immovable assets are assessed, allowing employees to determine the company’s financial level accurately.
  • Property For Sale. In this case, the assessment will help both the buyer and the seller accurately navigate the object’s actual value.
  • Housing exchange. In this case, none of the participants in the transaction will make a mistake, and everyone will be able to benefit from the cost of the apartment.
  • Use as collateral. When a bank uses an object as collateral, it is possible to accurately calculate payments of the debt and interest to repay all obligations incurred.

In each situation, assessing an apartment or other real estate will require a different amount of time to carry out the expert procedure. On average, such work is completed by our employees within five working days. However, everything will depend on the individual conditions of the service, as well as the needs and goals of the customer and the property’s characteristics.

How do you choose the right appraiser?

Before choosing our company, every new customer of expert services wants to make sure that they are dealing with real professionals. 

The main advantages and benefits that we use to attract clients are:

  • high professionalism and competent approach to performing even the most complex and non-standard work;
  • Quality assurance and conclusion of formal contracts with each client who requires a real estate assessment;
  • Free consultations that help a person decide how much he needs our services, as well as navigate each stage of the work;
  • Producing accurate, thorough, and detailed reports that provide solid reasons and arguments for the conclusions reached;
  • Reasonable and acceptable prices for the services provided, accompanied by pleasant discounts for most customers of professional services.

Today, we are widely known in the niche of providing qualified expert services as a successful team of true professionals who guarantee impeccable results. By contacting us, each client can be sure that he is entrusting his real estate or property to those who know how to do the job with maximum quality. This is evidenced by the reviews of our business partners posted on our official website. The full range of services we provide is also presented there, among which everyone can choose individual types of work or order a comprehensive assessment of real estate if we are talking about non-standard, large-scale, or several objects at the same time. 

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