When a person lives in a state other than Arizona and wants to acquire an unimproved lot located in the Prescott AZ real estate market, then will be protected by federal law that protects such sales. Infact, there are both federal and state laws which regulate the interstate sale of property. In this article we will focus on the federal side.
Read the Entire Article Add comment April 14th, 2007
The purpose served by the deed is to be a vehicle to transfer title on real estate from one person to another. In this article we will discuss the special purpose deeds which are used for frequently occurring transactions.
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The deed is most often known for being the method of transferring title to real estate from one person to another. Today let’s get to know some of the more commonly used deeds that offer very little to no protection for the grantees.
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Due to the risk associated with title defects, a seller may not want to provide certain covenants and guarantees against title defects that occurred before they held title to a property. In order to limit their liability, a seller will give a buyer a special warranty deed, also known as a limited warranty deed.
Read the Entire Article Add comment April 11th, 2007
During the final step of your acquirement of Prescott Az real estate transaction, also known as the “closing process”, the escrow agent will be handling a considerable amount of paperwork including agreements and disclosures, receipts, reports and other such documents. Let’s take a look at some of the typical documents today.
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It’s the final step in a real estate transaction and it’s the ultimate objective: to transfer title in the property. In this article, let’s briefly describe the process
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In the first part of the Appraisals two part series we discussed what a real estate appraisal is, and what the first two steps of the process are. Today we will continue with the final six steps.
Step #3: Collect and Analyze the Data
Once the appropriate data has been identified that will be suit the appraisal process for the specific real estate, the appraiser can collect and analyze the information.
The collection and analysis of the data is very important to an accurate appraisal and data is typically divided into two categories:
Step #4: Determine the Highest and Best Use
This determination is made to the property both as if it were vacant, and also by its best use as an improved property.
Step #5: Estimate Land Value
In determining the appraisal on the property, the value of the land alone is estimated by doing comparables on the selling prices of similar properties in the recent past.
Step #6: Using the Three Approaches
There are three approaches which exist in doing a real property appraisal to arrive at an estimate of value. These are sales comparison, cost and income.
While not all of the approaches will work for every property, it is a general practice to use all three unless reasons can be given for the exclusion for one or more of the methods.
One of the reasons that an appraiser would want to use all three is for control. Although the valuations each approach will render will be different from the other two, the numbers will be relatively close.
If one of the approaches has a value for the property which is significantly different then the other two methods then it can be safe to assume that there was an error in the calculation, the data used was incorrect or that the method is inappropriate to use on that property.
Step #7: Reconcile the Valuation Approaches
Due to the case that each of the three appraisal approaches (sales comparison, cost and income) will produce different values, there will be a need to perform a reconciliation or correlation step to arrive at an opinion of market value.
At this point the appraiser typically analyzes the facts and results for each of the approaches and uses his professional judgment to determine what approach truly bore the most accurate opinion of value.
Step #8: Prepare the Appraisal Report
The final step has the appraiser preparing an official written report for the client. The Uniform Residential Appraial Report (URAR) is used by most government agencies, it is also the most common report used today.
The report will typically contain a brief summary of the property, an analysis of the neighborhood and an analysis of the calculations used int he three approaches.
Add comment April 2nd, 2007
A real estate appraisal is an opinion of value. This opinion is often based upon the highest and best use of real property.
Many people relate getting an appraisal to purchasing a home or land in Prescott Arizona. The appraisal helps for the financial institution that you have found to determine if the property infact is valued at the price that is being asked for it. An appraisal is performed by a licensed or certified appraiser. There are a few professional organizations of appraisers in the US.
In addition to being licensed and certified, appraisers can earn professional designations. The most highly regarded is the MAI (Member, Appraisal Institute) which requires approximately one year of post graduate college level course work, a three year internship, and successful completion of a two day Comprehensive Examination.
What goes into an appraisal?
Appraisals follow an 8-step process, in this article, we’ll briefly touch on each point.
Step #1: Define the Purpose of the Appraisal
It’s important for the appraiser to define the purpose of the appraisal, the type of value to be estimated, the real estate that will be appraised, and the date of valuation.
Depending on the purpose of the appraisal, the appraiser will determine what type of data and information needs to be collected and what
Step #2: Plan the Appraisal
The appraiser will next develop a plan and time schedule, indentify personnel needed, type of data needed, and data sources. An appraiser has many different sources that he can collect his data from, these can include:
In the next article we’ll discuss the final five steps.
Add comment April 2nd, 2007
As home owners and home buyers in Prescott, we’ve heard the terms brokerage, broker, agent, real estate agent, and so on. Today, let’s learn what these terms mean and how they effect us.
Read the Entire Article 1 comment March 27th, 2007
Ever wonder what exactly gives a property it’s economic value? Here’s a quick glance at some of the different principles that directly influence what a property will be listed for on the market.
Read the Entire Article Add comment March 26th, 2007
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