Do you need an appraisal for estate planning purposes or are you an investor looking to purchase or lend on a luxury residence? If yes, then you would be smart to retain the services of a certified Los Angeles appraiser. While a real estate agent or broker can provide a broker’s price opinion through a few comparables, this quick scan or low cost estimate is only a preliminary reference point.
How well do you know the current zoning and its allowable uses or future plans by the city or county for the subject parcel at hand? How many neighboring properties have had financial or legal liens on title that influenced final pricing in the minds of buyers in that market? Who are the top brokers or agents in that community? What trends have and are they seeing from their conversations with principals? Will a new school be built, charter or private? Are any new companies offering jobs that will increase demand if salaries increase for prospects to consider spending more? What percentage of buyers finance their purchases with all cash or is their move local?
Retaining a certifiedLosAngeles appraiser could be an expensive decision but cutting corners and selecting the least expensive vendor could leave you without seeing the full picture. For instance, many luxury houses are built on hillsides that offer spectacular views as well as possible red or yellow tagged neighboring properties. How important would it be to provide ample time to your appraiser to fully conduct their due diligence? Or if the site’s square footage is partially below water for the oceanfront gems of Southern California – what value would your appraiser place on the land above versus below water? Would he or she disclose the accuracy or relevance of the assessor’s information as it relates to the final value? Would he or she explain its significance, if at all, to buyers and sellers in the marketplace?
If you are thinking that property valuation is just the measurement of a property, then you need to consider the reasons as to why some appraisers verify sales and listings with at least one party to the transaction. How did the seller’s motivation shorten or lengthen days on the market affect pricing? Or concessions to attract buyers to close the deal? What did the buyer think about the property and its location? What other product did they view as similar in their mind to consider and for what reasons? A seasoned Los Angeles appraiser should be able to answer these questions to a novice or sophisticated owner simply.