Beginning real estate investors should acquire this skill to estimate the value of a potential property. While you could pay a licensed appraiser to do the job for you, you could end up spending a lot of money if you have multiple offers. You may want to consider using an appraiser on your first few purchases to verify your assumption of value.

A licensed appraiser will study the three most comparable homes in the area that have sold recently. They compare the square footage and other features such as the number of bedrooms and baths, age of the home, improvements, physical condition, and the existence of a garage. The most important factor affecting the appraisal is the square footage of a property. While there are exceptions to this rule depending on the particular location of a property, you’ll find the square footage, number of bedrooms and baths, and physical condition to be the most significant factors affecting the value of a property.

If you would like to buy a home in Orange County, take advantage of the knowledge of local Orange County Realtors to help you locate the best bargain properties.