A clouded title not only affects a property’s marketability, but also its transferability. Some encumbered properties cannot legally be sold until existing encumbrances are removed. Transferability determines whether a property could be transferred free of any encumbrances that would affect sole ownership of the buyer.
The four elements that determine a property’s value can be found below.
How Value is Determined
Demand: What do market conditions dictate? Are there many buyers on the market looking for a similar property to the one being appraised?
Transferability: Are there any liens or encumbrances stopping the sale of a property?
Scarcity: Is the property scarce or are there many comparable listings available on the market?
Use: What is the property’s use, residential or commercial? What are the property’s features? Does the property contain any special features, such high ceilings, a gazebo, a movie theater, or other customized installments?
