Residential Value Reviews: A Comprehensive Guide
Learn everything you need to know about residential value reviews from this comprehensive guide. Find out how to assess, compare, and estimate residential value. Get expert advice on determining the best value for your property.
What Are Residential Value Reviews?
Residential Value Reviews, commonly known as RVRs, are generally used to determine value for residential properties. RVRs provide an opinion of value by evaluating a residential property's original construction features, its current physical condition, and its overall marketability. These reviews are often utilized by investors, government regulators, and brokerages when investing in single-family residences.
RVR Forms and Documents
RVRs consist of a form or documents that are used to evaluate a property's worth. Most residential value reviews have a set list of criteria to be considered, such as: location, size of the property, age, stability, viability of land, marketability, and current condition. Generally, an RVR details the estimated market value of a property based on the aforementioned criteria.
How Are Residential Value Reviews Conducted?
An RVR is usually conducted by an experienced appraiser or real estate professional. To conduct an RVR, a professional typically conducts an onsite inspection of the property to measure its dimensions and note its features. The appraiser then researches comparable properties in the area that have recently sold, and incorporates current market conditions to develop an opinion of the value of the property.
When Should Residential Value Reviews Be Conducted?
Most residential real estate investors conduct an RVR prior to making a purchase. This can help them to understand the estimated price the property should fetch, and to ensure they are not overpaying for the property. Additionally, RVRs are useful to track changes in value over time, especially for properties that are being remodeled or renovated. Finally, RVRs are also important for government, lender, or insurance purposes.
Conclusion
Overall, residential value reviews can provide investors, lenders, and governments with a comprehensive understanding of the value of a property. They are an integral part of the real estate investing process, and should always be conducted prior to making a major purchase or decision. When done correctly, RVRs can help to ensure that investments in residential real estate are sound.