Residential Appraisal Management

In the recent months, both residential and commercial properties have sold for on realistic prices. Today, income-based approach is mostly used to value properties. This write-up discusses the three different approaches of residential appraisal management and focuses on these approaches of property evaluation.

It is quite important for every lender is do appraisal of collateral, regardless of regulatory and bank policy requirements. It is preferable over other means of property evaluation and considered credible as well.

Basically, there are three approaches of value determining of real estate properties; the market or sales approach, the cost approach; and the income approach. All the above mentioned three approaches can play a prominent role in estimating the overall value of residential appraisal management. For instances, the increasing market prices and competition may increase the overall prices of properties. Sometimes, the mounting prices of materials may add up in the costs of many properties, thus different approaches have different value and lenders have to decide what approach they want to follow for the sale of their properties.