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Nathaniel Fitzpatrick Market Value and Buyer Willingness


Nathaniel Fitzpatrick and market value As described by Nathaniel Fitzpatrick, market value is primarily based on what a buyer is willing to offer. Granted, the buyer must be informed and acting to his/her own best interest with the sale price being unaffected by undue stimulus. However if there is no sale, how is market value of a property estimated?


Factors Of Market Value Market value is based on those above factors however the most probable price any given piece of real estate may bring is largely based on what other comparable properties have sold for. Inventory, buyers and sellers motivation, reasonable exposure time and other Fannie Mae (FNMA) defined factors support the definition.


MLS And Real Estate Appraisers

Real estate appraisers, like Nathaniel Fitzpatrick and other professionals in the industry have access to the MLS service. This subscription gives professionals access to vital information needed when valuing real estate. The MLS includes important pieces of information that is not available in public records. Homeowners can be misled by the ease of use and convenience provided by free online valuation databases.


• When searching for comparable sales (comps), appraisers put certain criteria into their efforts. Finding comps in which to compare the subject property takes experience. The following, however, is a general set of standards appraisers follow. • We have all heard it before, the three most important aspects in real estate; Location, location, location. Comps must be taken from the subjects market area. • Time is a factor in value. Comparable sales may be prevalent, only those that have recently sold are relied upon. FNMA prefers at least 3 comps to have settled within the past year.


Best Three Comps In most appraisals, three of the best comps are chosen. The appraiser reconciles the value based on the sale prices of those comps. The comps are entered into the appraisal report and the sale price is adjusted for inferior or superior aspects. For example; if the subject property has a deck and a comp does not, the appraiser will adjust the comps’ sale price upward to compensate for the inferior item. On the other hand, if the subject has 3 bedrooms and a comp has 4 bedrooms, the appraiser would adjust the sale price downward, as the comps’ 4th bedroom is superior.


• In complex situations Nathaniel Fitzpatrick makes adjustments for location, quality and/or condition. Many years ago during the boom appraisers warranted making positive time adjustments. Time adjustments can be made when the market is either increasing or decreasing in value greater than 5% per year. This is a complex method to justify and reconcile however it is sometimes warranted. • Many other aspects are considered in the valuation process. The above examples are a snapshot of what every appraiser does at a minimum. It takes years of experience to competently choose the best comparable sales.


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Nathaniel Fitzpatrick Market Value and Buyer Willingness  

As described by Nathaniel Fitzpatrick, market value is primarily based on what a buyer is willing to offer. Granted, the buyer must be infor...

Nathaniel Fitzpatrick Market Value and Buyer Willingness  

As described by Nathaniel Fitzpatrick, market value is primarily based on what a buyer is willing to offer. Granted, the buyer must be infor...

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