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Pre-Purchase and Pre-Sale


A pre-purchase sale is to assure the seller that they are getting the most out of their money as possible. The appraisal establishes the fair market value by evaluating the property’s living area, physical construction and condition. A pre-purchase appraisal will identify any major condition problems, which would be costly liabilities to the buyer. The appraisal is usually ordered when a purchaser is considering or has already put in an offer to the seller. The value given is to ensure that the seller does not sell his property for too little, and the buyer does not pay too much.


A pre-sale appraisal is conducted when a buyer has bought a new residential unit before the completion of the project. Typically, the builders will sell the units at a fixed price, and require a deposit. The actual residential units themselves are completed some time in the future. At this point, the buyer will usually take out a loan from a bank. However, banks do not loan out money unless the property is 97% complete. An appraiser makes his first visit then, to determine at what stage of construction in percentage terms the subject property is in. When the property is nearly complete, the appraiser is called in again to estimate the value of the residential unit at that stage. With this value, the seller is able to negotiate more effectively with the buyer, as the value came from a professional third party.

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