Frequently Asked Questions
What is an appraisal?
An appraisal is a written estimate of a property's market value completed by an appraiser. The value is based upon a market analysis of recent sales prices for similar properties in the area, and the property's physical condition. The reasons for performing a real property appraisal are quite varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. For example, appraisals are prepared for:
* To obtain a loan
* To contest your property tax
* To settle an estate
* To settle a divorce
* To establish a reasonable price when selling your home.
What is an appraiser?
An Appraiser is a trained and certified licensed individual qualified in providing an estimate of the worth of a property. He or she has extensive knowledge of the market and performs a thorough analysis in order to create an accurate appraisal of a property's value.
What does an appraisal report contain?
Each report must reflect a reliable estimate of value and must include the following information:
* The client and any other intended users.
* The intended use of the report.
* The type of value reported (as is or subject to repair or completion).
* The effective date of the appraiser's final conclusions.
* Specific property characteristics, including location, physical qualities, legal information, and economic attributes.
* All known easements, restrictions, contracts, property taxes, special assessments, and other similar items.
Where does an appraiser get the information to estimate the value of a property?
A physical inspection of the home will provide the size, the layout, amenities, condition, and other characteristics the appraiser will need. Other information will be obtained from various sources. The local Multiple Listing Service (MLS) will provide information on recently sold homes that can be used as comparable properties. Tax records and legal information can be obtained through the public county records and will also be used to verify the sale prices and physical qualities of comparables. Flood zone data is gathered from FEMA data software. An appraiser's familiarity and his past experiences of trends in your physical area will also lend valuable data to the report.
How can I prepare for an appraisal inspection?
During this process, the appraiser will measure your home, make a rough sketch of the layout of rooms, note any amenities (central air, Thermopane windows, refrigerator, stove, dishwasher, microwave, porches, patios, decks, in-ground pool, barns, detached garages, etc.) that you may have, the general condition of the home, and take several photos of the interior and exterior of the home. The main thing you can do to aid in this process is make sure there is easy access to the exterior of the house so measuring the size can be done accurately. On the interior, make sure there is access to items like the furnace and hot water heater. If your house is being appraised for a FHA or USDA loan, easy access to the attic and/or crawl space will also be needed to comply with their guidelines. Also, a written list of any updates or remodeling that you have done on the property is important to the final value of your home. Things worthy of adding value to your home are updates/remodels to the kitchen or bathrooms, new furnaces/air conditioning, new windows, new roof, finished basement areas. Please note what year the update/remodel occurred. For your convenience, we have a Property Update Form that you can fill out.
What is the difference between an appraisal and a home inspection?
The appraiser is not a home inspector, nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector's report will include an evaluation of the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows, and doors; the foundation, basement, and visible structure.
An appraisal is a written estimate of a property's market value completed by an appraiser. The value is based upon a market analysis of recent sales prices for similar properties in the area, and the property's physical condition. The reasons for performing a real property appraisal are quite varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. For example, appraisals are prepared for:
* To obtain a loan
* To contest your property tax
* To settle an estate
* To settle a divorce
* To establish a reasonable price when selling your home.
What is an appraiser?
An Appraiser is a trained and certified licensed individual qualified in providing an estimate of the worth of a property. He or she has extensive knowledge of the market and performs a thorough analysis in order to create an accurate appraisal of a property's value.
What does an appraisal report contain?
Each report must reflect a reliable estimate of value and must include the following information:
* The client and any other intended users.
* The intended use of the report.
* The type of value reported (as is or subject to repair or completion).
* The effective date of the appraiser's final conclusions.
* Specific property characteristics, including location, physical qualities, legal information, and economic attributes.
* All known easements, restrictions, contracts, property taxes, special assessments, and other similar items.
Where does an appraiser get the information to estimate the value of a property?
A physical inspection of the home will provide the size, the layout, amenities, condition, and other characteristics the appraiser will need. Other information will be obtained from various sources. The local Multiple Listing Service (MLS) will provide information on recently sold homes that can be used as comparable properties. Tax records and legal information can be obtained through the public county records and will also be used to verify the sale prices and physical qualities of comparables. Flood zone data is gathered from FEMA data software. An appraiser's familiarity and his past experiences of trends in your physical area will also lend valuable data to the report.
How can I prepare for an appraisal inspection?
During this process, the appraiser will measure your home, make a rough sketch of the layout of rooms, note any amenities (central air, Thermopane windows, refrigerator, stove, dishwasher, microwave, porches, patios, decks, in-ground pool, barns, detached garages, etc.) that you may have, the general condition of the home, and take several photos of the interior and exterior of the home. The main thing you can do to aid in this process is make sure there is easy access to the exterior of the house so measuring the size can be done accurately. On the interior, make sure there is access to items like the furnace and hot water heater. If your house is being appraised for a FHA or USDA loan, easy access to the attic and/or crawl space will also be needed to comply with their guidelines. Also, a written list of any updates or remodeling that you have done on the property is important to the final value of your home. Things worthy of adding value to your home are updates/remodels to the kitchen or bathrooms, new furnaces/air conditioning, new windows, new roof, finished basement areas. Please note what year the update/remodel occurred. For your convenience, we have a Property Update Form that you can fill out.
What is the difference between an appraisal and a home inspection?
The appraiser is not a home inspector, nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector's report will include an evaluation of the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows, and doors; the foundation, basement, and visible structure.
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