The first step in the appraisal will be completed during the free consultation, at which time we will determine the Scope of Work required and provide a quote. Next, a property inspection will be completed, at which time we will measure the home, draw the floorplan, and take photos and notes regarding the condition and amenities. After the inspection is complete, a thorough market analysis will be performed. Finally, the three approaches to value, the Sales Comparison Approach, Cost Approach, and the Income Approach will be considered and reconciled to provide a specific value or value range.
To determine the market value of a property the three approaches to value, the Sales Comparison Approach, Cost Approach, and the Income Approach are considered and applied when credible. The most common approach for residential real estate is the Sales Comparison Approach. In this approach, comparable sales (Comps) are selected then market based adjustments will be applied for differences in financing, location, and physical characteristics. The sales comparison approach provides a value range which is reconciled to a specific value based on the strength of the comparable sales.
No, appraisals can be completed as interior inspection, exterior only inspections, or even no inspections at all. However, the accuracy of the appraisal is normally more reliable when an interior inspection is completed.
No, there is nothing you need to do prior to an appraisal. A list of recent improvements is always helpful; however, this can also be noted during the inspection.
