Inspection – The first action taken for the appraisal report is the physical inspection of the home and property. The appraiser will measure the perimeter of the home and photograph the exterior. Once the exterior walk through of the property has been completed, the appraiser goes through the interior of the home and sketches a layout of all above grade living spaces. Rooms are photographed and any pertinent information regarding updates and renovations are discussed and noted.
The Report – Once all the data is collected regarding your home, the appraiser thoroughly researches the local market, within the past six months ideally, for sales of homes that are deemed to be the best representative of the value of your home. Major factors such as style, quality, condition, bedroom and bath count, and the size of your home are used to help narrow down the search for the best comparable sales. Other amenities (central air conditioning, inground pool, owned solar array, etc.) also play a part in helping to determine the final value.
Reconciliation – To conclude a value, there are three approaches to value. The most common approach is the Sales Comparison Approach, which is utilized from the best possible comparable sales, after adjusting. The cost approach is factored to support the final value conclusion and is determined by the value of the land, without the home, the replacement cost of the home minus any depreciation. The income approach is mainly used for income generating properties. The rental income of the property is researched along with the expenses to determine the value.
Conclusion – Based on all the research and adjustments required from the comparable sales and use of the approach that best represents the value of the property, the final value is concluded on the report.
List of Services for an Appraisal Report
- Listing of home to sell
- Estate settlement
- PMI removal
- Tax Abatement