What is the appraisal process? The first step is to discuss your needs and the purpose of the appraisal, and to provide an engagement letter to clarify the scope of the assignment. The appraiser will make an appointment to view, measure, and photograph the interior and exterior of the property and ask any relevant questions. Next, the appraiser will research your property information, analyze local market conditions, and review comparable properties to arrive at an opinion of value. Finally, the appraiser will provide you with a detailed appraisal report.
What does an appraisal report include? An appraisal report communicates the appraiser’s opinion of a property's value. It usually includes the following: a description of the property characteristics, a summary of the local real estate market, a list of comparable sales adjusted for any differences, an explanation of the methods/techniques used to determine value, and any limitations or conditions. Reports also frequently include a sketch of the home, maps, and photos.
What’s the difference between an appraisal and a home inspection? An appraisal is done to determine the value of a property, while a home inspection is done to fully examine the condition of a property and identify any potential issues. Both are important steps in the process of buying or selling a home.
Do appraisers have specific guidelines they need to follow? Yes. Appraisers are required to follow the Uniform Standards of Professional Appraisal Practice (USPAP), which is a set of guidelines and standards that outlines ethical and professional requirements. USPAP requires appraisers to remain impartial, use reliable data and analysis, conduct a thorough observation of the property, consider all relevant factors that may impact a property's value, and comply with all applicable laws and regulations.
What can impact the value of a property? Several factors can affect the value of a property. Aside from market conditions and trends, some examples include: location, lot size, zoning, square footage, number of bedrooms and bathrooms, property quality and condition, and additional property features.
What can I do to prepare for an appraisal? 1. Tidy up your home to make it easier for the appraiser to assess size, condition, and features. 2. Make a list of any updates you've made so you can discuss them with the appraiser. 3. Gather any relevant documents such as HOA agreements or home inspection reports. 4. Make a list of any questions you may want to ask the appraiser.
Here are some questions people frequently ask related to residential real estate appraisals.
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