Established in Iowa City in 1993, MRS Appraisals is a locally-owned appraisal business. Our full-time state-certified appraisers offer real estate analysis and reporting on residential and commercial properties, including condominiums, agricultural estates, development grounds, federal housing, and more.
- Residential Appraisals
- Commercial Appraisals
- Development Ground
The Most Common Types of Real Estate Appraisers
There are different reasons why you may need a real estate appraiser for a Johnson County property. These professionals can provide various types of appraisals, each of which serves a certain purpose and offers a benefit to you as a buyer of commercial or residential property.
The appraisal options listed below are typically used in a handful of different scenarios and provide benefits that you can’t get in any other way. Knowing when to properly use them should make it easier for you to find the high-quality appraisal approach that works the best for your overall needs.
Cost Approach – One of the Most Common Types
When you contact a Johnson County real estate appraiser, you are probably anticipating what is known as a cost appraisal. This option is among the most common on the market and provides a myriad of benefits that make it more than worth your consideration. Understanding them makes sure you get the best result.
Typically, a cost appraisal is exactly what its name would suggest – they are trying to establish the cost of the home. In essence, it is attempting to gauge how much it would cost to create the same property, including building the home and other steps along the way. This process is critical for a number of reasons, including:
- Providing You With Better Insurance – An insurance company may need to work with an appraiser to figure out the value of your home versus that of others like it on the market.
- Property Type – Sometimes, you may have a special type of property that needs to be properly appraised because it cannot be assessed using other traditional types of assessment tools.
- Prepares for Market Issues – By fully understanding the cost of your home and the price to replace it, you can be prepared for other types of market factors that may affect your home.
Typically, a variety of factors go into this process to make it as accurate as possible. These include the age of the property, the costs of other lots and buildings like it, and the types of construction methods and materials used in this process. In this way, you can get a very accurate understanding of your home value.
Don’t forget – the improvements to your home may also be utilized as a way of gauging the cost of your home. So pay attention to these factors and work hand-in-hand with your appraisal professional. They will help you get the best overall understanding of your property’s true value.
Income Approach – Examining Properties That Produce Income
Homeowners don’t have to worry about this type of appraisal because it is one that only a commercial Johnson County real estate appraiser will do for you. In essence, it is designed to gauge the value of a piece of property that will be used to produce income, such as a manufacturing facility.
During this type of appraisal, your appraiser will answer how much money this property can generate and whether or not its current value is congruent with this factor. Unlike cost appraisals, it is a much more complex process that requires examining a variety of elements, such as:
- Income Capitalization Value – This factor examines how much of the property can be used to generate income and whether or not it can be capitalized for the best benefits of your needs.
- Net Operating Income – This factor is the calculation of how much income your property will make without taking into account other elements of the property.
- Expenses – When you operate a business on a piece of property, you need an appraiser to get an idea of the types of expenses you may experience and how they may affect your value.
Most of the time, this type of assessment is something that takes a little more time because it is fairly intensive and requires study. However, it is something that may take no more than a handful of days for the initial legwork and then perhaps a few more days of examination.
In this way, you should have a pretty good understanding of whether or not your commercial property is worth the price that you have to pay. You can also better grasp elements like the overall value of your property and whether or not you need to do upgrades to keep it operating at a profitable level.
Sales Comparison – Common for Many Property Types
Lastly, your Johnson County real estate appraiser may attempt what is known as a sales comparison appraisal. This approach is pretty much what you think: the value is gauged based on similar properties, including the buildings on the property and other elements that go into its value.
Agents start by narrowing down the different options that they compare to your property and take the time to fully grasp its overall benefit. By knowing what other properties of the same type cost, you can avoid paying too much or getting too little when you buy or sell a property.
When to Contact Us
Obviously, a Johnson County real estate appraiser can provide a myriad of benefits that make them well worth the time and money. So if you are interested in this process and want to get the best results, make sure to contact us at MRS Appraisals right away to learn more about it.
Our professionals will sit down with you and come up with a great plan that works for your needs and which makes sure that you are satisfied with your appraisal. We’ll then do whatever we can to make sure that you are happy with your home and your property in a way that makes sense for your needs.
When buying our home, we were a little apprehensive about finding an appraiser that we could trust. Man, did we hit the jackpot with MRS Appraisals! They were thorough and easy to work with. Now, we have a home we are proud to call our own. We would definitely recommend MRS!
Best appraisal company to work with, very knowledgeable
The experts at MRS Appraisals are what made the decision to purchase a new building for my business easy. Their experience and professionalism set my mind at ease, knowing that their appraisal would be honest, non-biased, and detailed. Thank you!