Appraised Value vs. Market Value
When it comes to real estate, understanding the value of a property is more than just a number—it's about making informed decisions. The often-confused concepts of "appraised value" and "market value" leave many confused. Understanding the differences between the two is crucial for navigating property transactions successfully. What is Appraised Value? The appraised value of a property is an estimate of its worth as determined by a professional appraiser. This process involves a thorough inspection of the property, considering factors such as location, condition, and recent sales of comparable properties in the area. Appraisers also take into account current market trends and the unique features of the property to arrive at a value. This appraisal is often used by lenders to determine the amount of a mortgage loan. What is Market Value? Market value, on the other hand, is the estimated amount a property would fetch in the current market. It's largely influenced by supply and demand dynamics. Factors such as the desirability of the location, the condition of the property, and current real estate market trends play a significant role in determining this value. Unlike appraised value, market value is not a fixed number and can fluctuate based on market conditions. Key Differences Between Appraised Value and Market Value The primary difference lies in their determination: appraised value is assessed by a professional appraiser, while market value is influenced by the real estate market. Appraised value is more static and is used primarily for financing purposes. In contrast, market value is dynamic and reflective of the current real estate market conditions. Appraised value is an estimate of a property's worth as determined by a professional appraiser. ‍Determination Factors: Based on property inspections, local comparisons, and market trends. Purpose: Used primarily by lenders for mortgage loan determination. Stability: More static, reflecting the property's condition and the market at the time of appraisal. Influence: Determined by objective criteria and professional assessment. Market value is the estimated amount a property would sell for in the current market. Determination Factors: Influenced by supply and demand, location desirability, and property condition. Purpose: Reflects what buyers are willing to pay in the open market. Stability: Dynamic, can fluctuate based on current real estate market conditions. Influence: Shaped by the real estate market dynamics and buyer-seller negotiations. Why Both Values Matter in Real Estate Understanding both values is important in real estate transactions. The appraised value is crucial for securing financing, as lenders use it to gauge the loan-to-value ratio. For sellers and buyers, market value offers a realistic view of what the property could sell for in the open market. Discrepancies between these values can lead to renegotiations or adjustments in sale terms. Key Takeaway Both appraised value and market value are essential components of real estate valuation. Understanding the difference between the two can help buyers, sellers, and investors make better, more informed decisions. To view the original article, visit the Revive blog. Related reading Pricing It Right: How Agents Can Show Value to Home Sellers Through CMAs Research-backed Remodeling Ideas that Net a Higher Sales Price Why One Top-rated Real Estate Valuation Model Is Better Than the

Fridge Magnets, Begone: Why the Annual Equity Review Is the Best Way to Engage Past Clients
You're an advisor to clients during the purchase or sale of a home, but who do you become to them once the transaction is closed? Too often, the answer is "just a memory." But if you want past clients to keep thinking of you as their go-to advisor for all things real estate, what strategies can you use? One of our favorite ways to stay top-of-mind with previous clients is by offering an annual equity review. This method is not pushy or salesy — rather than contacting clients because you want something from them (their business or a referral), you're reaching out to offer something to them, no strings attached. And all the while, you're highlighting your market expertise and cementing your value in the minds of your previous clients. So what do you need to know to leverage this strategy, and how do you approach past clients? Real estate coach Jason Pantana and lead generation expert David Caldwell cover all you need to know in the video below. Watch it to learn: About the concept of the annual equity review, in depth How you can use this strategy with past clients and nearby potential clients Methods to communicate home value information The importance of providing certainty about home values in the market Why prospects from your database are easier to convert than "bottom of the funnel" leads And more! Related Reading Grab Previous Clients' Attention with the RPR Equity Update How to Reconnect with Past Clients 8 Steps for Nurturing Long-term Relationships with Your

Revive Uses AI to Introduce a New Era of Pre-sale Renovations
It's a $300 billion opportunity. That's how much homeowners collectively leave at the closing table when selling a home and not opting for the pre-sale renovation route to maximize their home's sales price. The lost equity is so staggering that it gave birth to the pre-sale renovation industry, led by companies like Irvine, Calif.-based Revive. Compass was first with its Concierge program, but now Revive is introducing its own "first." Revive launched Revive Vision AI: a game-changer for agents and home sellers alike. Think smart CMA meets AI-powered AVM, providing a more detailed foundation for pre-sale renovation discussions to help agents with their listing and pricing strategy. What took days is now seconds with AI What used to take days is now taking seconds because of the built-in generative AI leveraging computer vision and machine learning in this mobile app. It allows real estate agents to provide a homeowner at the listing presentation a complete pre-sale renovation game plan with the total budget and the ROI gain if the homeowner goes the zero-dollar out-of-pocket renovation before they list to maximize their sales price. Here's how the Revive Vision AI mobile app works Real estate agents upload at least 10 photos of their client's property into the Revive admin dashboard via the mobile app or desktop. Second, Vision AI compares the subject property with similar homes in the area by analyzing photos available in MLS records. Next, the data obtained from the photo analysis and comparative analysis is processed using advanced machine learning algorithms. This enables Vision AI to estimate renovation costs, potential market value and projected return on investment. Finally, a report is generated providing investment insights and recommended home improvements. Benefits of Vision AI According to Dalip Jaggi, COO and Co-founder at Revive, empowering agents are four major benefits that include: Foundation for discussion: The Vision AI report is a starting point, fostering meaningful conversations with clients about their property's potential and the best strategies to realize it. Confidence and credibility: Whether you're using Vision AI to obtain knowledge or use it as confirmation of things already known or an illustrative educational tool with your clients, you can speak with confidence and credibility, knowing you are making decisions backed by empirical data and professional analysis. Competitive advantage: By utilizing Vision AI as an early adopter, you will be one of the first professionals using machine learning and computer vision technology to help guide and confirm listing and pricing strategies. Quick property assessment: Within seconds, agents can generate valuable property insights for themselves and their clients at the listing appointment stage. Agents using this during their listing presentation will escalate their success rate and set themselves far apart from their competitors with this powerful differentiator. Agent-centric strategy Smartly, Revive understands the agent is at the center of the transaction, and this tech was built for them – easy to use and explain. Michael Alladawi, CEO and Co-Founder at Revive, emphasized, "Agents are the powerhouse of the real estate industry, and sellers expect them to be knowledgeable on all things real estate. Revive Vision AI is an easy way for real estate professionals to present more detailed and accurate information to their clients in a digestible, easy-to-understand way," he added. And the mobile tech is mind-blowingly impressive with five major components: Current Condition Home Value: The estimated current market value of the property in its existing condition, without any renovations or improvements. Future ARV (After-Remodeled Value): The projected market value of the property after completing the recommended renovations and improvements outlined in the renovation plan. Potential Score: A score that signals the property's value-added potential; a higher score means greater opportunity, while a lower score indicates limited opportunities for enhancement relative to its surroundings. Renovation Scope and Budget: A detailed outline of the recommended renovations and improvements, including specific tasks and estimated contractor-backed costs for each item. Renovation Investment Plan: A comprehensive plan outlining the estimated profit potential for the homeowner if they complete the recommended renovations before selling the property. Every once in a while, a true breakthrough technology resets the playing field. AI is doing this in real estate today, and the latest example comes from Revive. And if that were not enough, Revive's Alladawi teased, "This is only the beginning of how AI will be leveraged to help real estate agents and homeowners." More to come from AI for real estate, for sure. To view the original article, visit the WAV Group