What is the first step in the appraisal process?
During your initial consultation I will determine what your appraisal needs are, along with the type of property being appraised. With that information, I will assemble what is known as the Scope Of Work. This will outline the intended use and users of the final appraisal report, along with steps that will be taken to develop a credible opinion of value for the property.
What are you looking for when you come out to see the house?
In short, everything. While specific features of a house may, or may not have a direct impact on its appeal to potential buyers, the overall level of upgrades and updates is significant to the valuation of the property.
How can I prepare for your visit?
A list of any improvements made to the house, along with the year of completion is always helpful. Don’t worry if you forget to add an item to this list. As I go through the house I will note all items that appear to have been updated. There is no need to worry about housekeeping. My focus will be on the house itself.
Will you be able to give me a value estimate immediately?
Coming out to see the house is only the first step in the valuation process. Once I have gathered all relevant information and have toured the surrounding neighborhood, the next step begins.
How is property value estimated?
There are three recognized approaches to the estimation of market value: The sales comparison approach, income approach and cost approach. The sales comparison approach examines the sale price for recent sales of similar residences in the neighborhood, while considering differences in size, condition, additional features, etc. Recent actions of buyers and sellers of homes in the neighborhood offers a good indication of anticipated market reaction to the home being appraised. The income approach will examine appeal of the house as an investment tool. The cost approach examines the cost to build a similar home, minus any depreciation. Which approach used is determined within the Scope Of Work.
When will my appraisal report be ready?
Every assignment is unique. Every effort will be made to meet all client deadlines as discussed during the initial consultation.