The real estate estimation or the proposal estimation value draft is an action which includes knowledge and skills that assessor (court interpreter) possesses in order to determine and predict real estate price as well as possible profit or income of the real estate in future that can be converted into money, using scientific approaches and methodologies.
Market value of the real estate
The possible price on the market at a certain period represents the market value of the real estate. The possible price on the market at a certain period consists of the range made by a lower market value border, the real market value and maximum market value.
The price that is possible to reach with great certainty and majority of buyers, in a short period of time, represents the lower market value border of the real estate.
The price that is possible to reach on the market with majority of potential buyers and with certainty, in a reasonable period of time, represents the real market value of the real-estate.
The price that is possible to reach with low number of buyers, who are especially interested in subject property for personal reasons, and with limited certainty in a short period of time, represents the maximum market value of the real estate.
The relation between supply and demand defines in which part of the range a market value real estate shall be.
If supply is higher than demand, the period for reaching the selling price shall be longer and the selling price shall be mostly in between the lower market value and real market value of the real estate.
If supply is lower than demand, the period for reaching the selling price shall be shorter and the selling price shall be mostly in between the real market value and maximum market value of the real state.
The method for establishing the range of the market value regarding subject property represents comparison to reached prices of the similar or the same real estate which have been sold lately with appreciation and evaluation of all specificities that subject property possesses on the assessment day.
One of many appropriate ways a court interpreter collects information regarding sold and on offer real state and agreed selling prices on the real estate market is by himself/herself. Furthermore, a court interpreter is always in touch with authorized local agencies.
Court interpreter of civil engineering – specialist – real estate assessor.