Real estate matters are essential for those who are selling, purchasing, or seeking investment opportunities. This implies that an accurate evaluation or valuation of the property must be performed.
To determine the actual value of a home or plot of land, an expert in valuation is required. Depending on a number of variables, this may be a lengthy process, or it may be a simple task for a trained professional. This is typically determined by the real estate market, whether or not upgrades were made, the property’s location and condition, and similar factors. Before a deal can be finalized for a seller, it is essential to hire a real estate valuation expert to ensure that the property’s true value can be determined.
The value of the land or home should be known by a prospective buyer so that he or she can make an informed decision based on the factors that determined the dollar amount. This may then lead him or her to realize that some houses are preferable to purchase based on these characteristics rather than a less expensive home in an uncertain location. If at all possible, one should avoid living in areas with poor reputations, criminal activity, or where people are injured both inside and outside their homes. Investors seeking to add their funding to a project may consult with a real estate valuation expert in order to safeguard their investment with a property of sufficient value.
What a Real Estate Valuation Expert Does
The majority of professionals used as expert witnesses or professionals in the field have extensive experience and frequently years or decades of related field work. Real estate valuation is typically performed by real estate economists, brokers with consulting firms, or real estate agencies for all types of transactions. This indicates that they have knowledge of property values and value loss, relevant industry standards, and residential and commercial land valuation. With this information at their fingertips, they are able to distinguish between the true and perceived value of real estate for private homeowners and business owners with commercial land or property. This category may include tenants, homeowners, renters, leaseholders, landlords, and other comparable individuals.
Valuation is a complex science supported by numerous courses and studies in mathematics and economics. With knowledge of small-scale economics, it is possible to determine the neighborhood value of the property in comparison to the price the seller has placed on the house or land. If the transaction involves commercial real estate, the landlord or owner must be identified. This indicates that the arrangement may be on a smaller scale if it is leased or rented rather than sold. For purposes of litigation, this aids a plaintiff who has been wronged in obtaining the market value of a property when he or she has been cheated out of thousands or millions of dollars due to bad faith business practices.
Needs of Valuation Obligations
Real estate valuation is essential for two primary reasons, whether the subject is an individual or a business. When a single person attempts to purchase a home or piece of land, he or she must be aware of the property’s value. If the seller is asking for a much higher price, the buyer may choose another property and save money. Numerous elements, such as renovations, improvements, nutrient-rich soil, and location, can increase or decrease the value of a residential property. With the assistance of an expert in valuation, an approximate number is calculated for these elements.
The field of real estate is extremely broad with numerous sub specialties. Therefore, a lawyer handling a matter involving a real estate dispute should focus on the nature of the dispute and only retain an expert who has expertise in that particular area of real estate. Much like a lawyer handling a medical malpractice action involving heart surgery would retain an expert in cardiology, not a neurosurgeon or an orthopedist, it is just as inappropriate to use a real estate broker whose expertise is limited to the purchase and sale of single-family residences in a dispute involving commercial real estate. Do not retain a lawyer whose expertise is limited to large commercial transactions as an expert witness in a case involving the standard of care of a real estate broker in the purchase and sale of a single-family residence.
When selecting an expert witness in a legal malpractice action, it is imperative that the expert understands the nature and practice of that particular defendant. While a senior partner from a large metropolitan law firm may have great credibility with the jury, if his expertise in real estate transactions consists solely of negotiating the purchase and sale of high rise office buildings and shopping centers, he will be vulnerable on cross-examination because his expertise does not include the standard of care expected of sole practitioners in outlying suburban communities. It must be remembered that in a legal malpractice case the standard expected is that of members of the profession in the same or similar locality under similar circumstances, so select the expert with this in mind.
The initial threshold to qualify as an expert witness is not difficult to meet, bearing in mind that the definition of an expert is only that they be someone who has “special” knowledge, skill, experience, training or education in a particular subject. This broad definition allows basically any lawyer to testify as an expert in a legal malpractice case or real estate dispute, and virtually any real estate broker to testify in a dispute involving the interpretation of real estate documents or the standard of care of a broker. However, failure to select an expert with specific qualifications renders that expert weak on cross-examination, especially if the other side’s expert has qualifications in those areas. The jury will be instructed to consider those qualifications. If your expert does not measure up to your opponent’s, your client will suffer.
Real Estate Expert Witness Services by Craig Cherney, Esq.
Craig Cherney is a trusted client advisor and a sought after real estate lawyer and expert witness who is hired by the nation’s top Real Estate Litigation Attorneys to help resolve their litigated real property matters. Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342. If you are litigating an easement case, Craig Cherney might be able to help you advance and win your case.