Below are some of the most commonly asked questions that we receive. If you have a question that is not answered here you can Contact Us.
What should I expect during the appraisal inspection?
The appraiser will usually measure the exterior of your home, observe the interior mapping out the layout, taking photos for documentation of quality and condition and noting type and condition of appliances, flooring, mechanical features, amenities and special features. See the “The Inspection” page for further details.
What is the Appraisal Process?
The appraisal process is an orderly and concise method of reaching an opinion of value. The process has six major steps which include:
- Definition of the problem: What is the intended use of the appraisal? What type of value is being determined?
- Scope of Work: the type and extent of research and analyses required for the appraisal assignment
- Data collection and analysis
- Application of the three approaches to value: Sales Comparison Approach (value indicated by recent sales of comparable properties), Cost Approach (the current cost of reproducing or replacing a building) and Income Approach (value that the property’s net earning power will support)
- Reconciliations of value indications
- Final opinion of value
In most residential appraisals the sales comparison approach best reflects the actions of buyers and sellers and is the most convincing and dependable approach to value.
What is Market value?
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in what they consider their best interests;
• A reasonable time is allowed for exposure in the open market;
• Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto;
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
*definition from: The Appraisal Institute’s- The Dictionary of Real Estate Appraisal, 5th Edition
Will this appraisal cause my property taxes go up?
No. The appraiser is required to maintain confidentiality with the client, which would typically be you or the bank in a mortgage related appraisal. The local tax assessor will not be notified of the opinion of value.
How does an appraisal differ from a home inspection?
Home inspections are always recommended. The purpose of a home inspection is to investigate the structural integrity of your home including roofing, full exteriors, structural elements, full interiors, plumbing, electrical and all mechanical components that are considered to be permanent fixtures. An appraiser is not a home inspector; we observe visible aspects of your home.