Property Appraisal: Role of GIS in Conducting Property Appraisal

If you are in the real estate business, you may already be familiar with the term “property appraisal.” It refers to the process of figuring out the value of the real estate. Finding out the appropriate value of the property is important, as it gives you a better idea of how much the real cost is and whether you should invest in a particular property or not. These details are essential if you are looking to invest in multiple properties. It is a perfect way to expand your real estate portfolio. The question is, how can the GIS be used for property appraisal? GIS or Geographic Information System is used to analyze a real estate's exact value — be it a residential property or office space. It allows you to visualize different trends and understand the popular patterns in the real estate market. It also makes it easy for homeowners to send detailed and accurate data about the property valuation to shareholders, as well as taxpayers. GIS also helps in helping you figure out the price per square foot and compare the prices, features, and other parts of the property. The tools are also widely used for calculating sales ratios to make the process of appraisal efficient and smooth. How to Conduct Property Appraisal? Why is it Used? Not only for investors and businesses but the property appraisal tools are used extensively by the government to evaluate the precise cost of the property. The main purpose of property appraisal is to identify the accurate selling price of the property based on its current condition. This is mainly done for taxation purposes, but an appraisal can also be conducted by people looking to diversify their investment portfolio. In addition to that, a bank and a financial institution might also do a property appraisal before approving the loan request. It gives them a better idea of whether they should lend money to the borrower. It helps prevent the losses on home loans. For instance, if the appraisal falls below the purchase price of the home, a bank might refuse to give a loan for the property. As mentioned earlier, the government appoints a professional and qualified property appraiser who’s authorized to conduct appraisals. They might use a number of methods to evaluate the cost of a property. This may also include comparing the market value of properties in the same region or real estate with the same number of rooms to get an accurate selling price. For taxation purposes, a property appraisal is conducted to identify the exact value of donations. Note that these appraisers are conducted to ensure that the value of a real estate matches the age, condition of the property, and the features of a home. And as mentioned before, appraisers help the government and banks determine whether you are the right candidate for the loan and how much a bank should lend you. GIS can be used to get a visual picture of the property.