Real Property Appraisal: A primer

Appraisals involve a number of very import steps that help value a home for a myriad of reasons. Review Appraisals are an even more important way to make sure that attention is paid to accuracy and efficiency. This process requires the attention of highly trained experts to maintain the highest quality. /span>

Each member of the team is accustomed to working in conjunction with the others. Your real estate professional works directly with you. Your bank is responsible for fulfilling the role of bankrolling the transaction. Then, the title company makes sure that all of the details of the transaction have been completed and that the title is clear for transfer.

Which party is responsible for making sure the appraised property value is the same as the purchase price? This is up to the appraiser. We provide you with a fair appraisal of what a buyer will likely pay or what the seller will likely receive for the property. We keep all parties informed throughout the process. A certified appraiser from the Home Appraising Group will stay on top of your appraisal and keep you in the know.

INSPECTING THE SUBJECT PROPERTY

After inspecting your property we will have the information we need to determine the homes current status. One of the Home Appraising Group experts will physically evaluate the home, making note of how many beds and baths are includes, special amenities worth noting and the overall condition and status of many elements of the home. A way that some assessors convey the actual size, layout and details of a property is to create a sketch of the floor plan. An important priority is noting anything that will change the valuation, which includes things like defects found in the property.

At the conclusion of the physical inspection process, its time to turn to the numbers. Experts at the Home Appraising Group will apply two or three analyses in order to find the value of the property. These may include a replacement cost evaluation, a paired sales approach, and an income approach (should rental properties be prevalent).

ANALYZING COMPARABLE SALES

Appraisers begin the process with a thorough understanding of the specifics of your community. They know which features buyers want most. Beginning with a list of comparable homes and their recent sale prices, they can begin the next step of the process. Combining the comparable price list with the features specific to your home they can start creating an actual number. If people in your area want a spacious home with a view, and your have both – that becomes part of the valuation.

  • What if a home sells for a certain price and it has all new windows but another home is being appraised and it has received this upgrade? If this is the case the appraiser would subtract the value of the new windows from the sale price when creating a value for the home being appraised.
  • On the other side, if the home that sold had older windows and the house being appraised has the upgrade, then the appraiser would add that cost to the value of the home.

Our approach at the Home Appraising Group, is to use our knowledge of the value of real estate details in Pennsylvania. We often use this approach to value when an appraisal is for the purchase of a home.

COST
APPROACH

During a cost analysis, an appraisal professional studies local information about building costs, labor fees and other construction prices to determine what it might cost to build the same property in the current market. That cost is then the highest amount that the property could be listed at. This approach is used in only certain circumstances.

VALUATION USING THE INCOME APPROACH

A third way to value a property is to look into the price of renting a home similar to yours. By looking at and comparing the revenue generated by similar rentals, the income generated by the property can yield helpful data on the value of the home.

ARRIVING AT VALUE CONCLUSION

Integrating the data from each approach, the appraisal expert will specify the probable selling price for the property. The estimated value outlined in the report is not an exact final selling price, rather it is an indicator of what the property may sell for. There are many factors and situations of both buyers and sellers that can impact the final sale price of the home. The number enclosed in the report yields information for the lender about a reasonable loan amount. As the process draws to a close you can take comfort in knowing that the Home Appraising Group expert stands by the market valuation so you can make an informed decision.