THE PROCESS WE FOLLOW
A home appraisal is an important step in determining the value of a property.
Initial Assessment
The home value estimator will gather information about the property, including its size, features, condition, and any recent improvements or renovations. They will also review public records, such as the property’s legal description, tax records, and any previous appraisals.
Property Inspection
The appraiser will visit the property to conduct an inspection. During this step, they will assess the overall condition, layout, and quality of the home for property appraisal. They will also take measurements of the rooms, note the number of bedrooms and bathrooms, and evaluate the property’s curb appeal.
Market Analysis
The appraiser will research and analyze recent sales of comparable properties in the area, commonly referred to as “comps.” They will look for properties that are similar in size, location, condition, and features to the subject property. This real estate appraisal helps determine the market value of the home being appraised.
Adjustments
After identifying comparable properties, the appraiser will make adjustments to account for any differences between the subject property and the comps. For example, if the subject property has one more bedroom than a comp, the appraiser may add or deduct value accordingly. These adjustments aim to make the comps more similar to the subject property, enabling a more accurate comparison.
Report Preparation
The appraiser will compile all the gathered data, including property details, market analysis, adjustments, and other relevant information, into a formal report. The report typically includes a property appraisal summary, a description of the property, details on the market analysis, the appraiser’s final valuation, and any supporting documentation.
Final Valuation
Based on the analysis and adjustments made, the appraiser will determine the final appraised value of the property. This property value estimate represents the fair value as per the market at the time of the appraisal. The appraiser’s valuation is influenced by various factors, such as market conditions, location, property condition, and recent sales activity.
It’s important to note that the appraisal process may involve additional steps or considerations depending on the purpose of the appraisal, such as for mortgage lending or estate planning. Additionally, local regulations or specific requirements from lenders or appraisal management companies may also influence the appraisal process.
