Real Estate Appraisals
Appraisals play a major role in all real estate transactions. A home appraisal is an evaluation done by a certified appraiser where they calculate the market value of your home based on square footage, features and location.
There are two common sales approaches that are used in the residential market. The most common is the sales Comparison Approach, which is a method where the appraiser estimates property market value by comparing it to similar properties. The second is the cost approach, most commonly used with new properties. In this method, the build costs are taken into consideration and the appraisers estimates what it would cost to replace the property if it were to be destroyed.
What You’ll See on a Residential Appraisal Report:
• Details about the property as well as side-by-side comparisons with three similar properties.
• Information on the type of property
• An evaluation of the overall local real estate market
• Details on any issues the appraiser feels are harmful to the value of the property, such as poor street access
• Notes about any serious flaws, such as a cracked foundation
• An average sales time estimate