The accuracy of valuation of residential property is something that is difficult to measure using detailed numbers and values, without in-depth study and evaluation of research results. However, one thing is certain: The accuracy of property valuation is highly dependent on the depth, level, and amount of detail and analysis carried out by the appraisers or real estate services.
It is the job of the appraiser to produce the most credible and reliable estimated market value for the property. However, the intended use for assessment usually encourages the level of detail, analysis, type of research work, and at the same time, the type of report used by assessors to convey their estimates.
The market value of the property can be described as the most possible (and reasonable) selling price that would be paid by the prospective buyer to the seller, given that both parties have the knowledge that they do not act under pressure. To conduct an appraisal, appraisers must depart to investigate aspects of property values that they consider important for valuation.
They must describe, disclose, analyze, and finally formulate a report that summarizes their findings. Throughout all this, an appraiser must also pay attention to anything that can affect the valuation of residential property, including economic, legal, general market, and even political conditions.
When you plan to hire a property valuation service, you will likely be given one of two versions of the valuation – either a full report or a summary version. The full version of the appraisal naturally has all the information collected by the appraiser throughout its review, along with its analysis and subsequent conclusions. Summary reports, on the other hand, are abbreviated forms of the report. Depending on your intended use, you can request a summary of the assessment or a full report.