What fundamental differences are hidden behind these various names relating to real estate appraisal? How is an “estimate” offered by a real estate agent different from a paid real estate appraisal? What credit should be given to an automated online real estate appraisal? What are the guarantees offered by each of these methods? Why, depending on the circumstances, seek one rather than the other?
This article aims to understand the scope and limits of these different methodologies in the field of real estate Property Valuers in order to clarify the choice of each according to their expectations and objectives.
Thus, determining the market value of a property (i.e. the price at which it is likely to go by the simple game of supply and demand) can refer to various purposes:
- Sell your property in the best possible conditions;
- Equitable sharing of real estate assets: donation, inheritance, distribution of shares following the constitution of an SCI, etc. ;
- Initiate administrative procedures : readjust an IFI base by producing an expertise with the tax authorities. Produce with a bank the market value of a property being acquired. The sums borrowed being guaranteed by the value of the property acquired;
- Reconcile diverging points of view, such as in particular enlightening a seller or a buyer on the merits or otherwise of the price of a property;
- Solve conflicts or disputes : divorces, conflicting successions, disputes with the tax authorities, etc.
We will see it later: it is according to the objectives mentioned above that we will focus on an opinion of value rather than an expertise or vice versa. From there, we will not address the same categories of professionals.