Valuation of Rural Properties
First-time rural-property buyers are often unaware of the complexities that determine a property’s value. There are three basic methods.
The Broker Opinion.
This is an opinion of value under current market conditions developed by the broker using all the tools available, not least being experience in the field. It is not intended for lending purposes. There are many variables to be considered, and “comps” may be difficult to find.
The Appraisal.
This is a report on value by a licensed appraiser for the benefit of a lender or an estate. They generally are based on recent market activity and are therefore retrospective. A real estate broker may not produce such a document.
The Owner’s Opinion.
Said in jest this may be and only the buying market will judge, but in many instances where a property is priced at a seemingly high point, it will be that the owner prevailed and the agent acquiesced to secure the listing.
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