Residential and Home Appraisals

The process of performing an appraisal report consists of an investigation which leads to an opinion of value. There are three "common approaches to value" which helps the appraiser conclude this opinion or estimate. One of the methods is the Cost Approach - which is how much capital would be required to replace the improvements, minus physical deterioration and other factors, then adding the land value. The most common approach in figuring the value of a house is the Sales Comparison Approach which involves concluding a comparison to similar houses nearby. The Sales Comparison Approach is normally the most definitive and best indicator of value for a residence. The Income Approach is generally used for determining the market value of income-producing properties based on what an investor would pay based on the amount of capital a property produce.

An appraiser offers a fair and credible determination of market value, with the support of market data and real estate transactions.  Appraisers exhibit their conclusions in appraisal reports.

The approximate expense for a typical residence (up to 3,500 SF) can range from $400 to $500 depending on the size and complexity of the property. Fees increase from there depending on the size of the property as well as other factors.  The industry standard “turn time” is 5 to 7 business days from the date of the site visit; however reports can be delivered much sooner for additional “rush fees” ranging approximately 25% to up 50%+ more. 

 Any time the value of your home or other real property is being used to make a significant financial decision, an appraisal helps. For those selling a home, you'll want to figure out the price that gets you the most profit but doesn't leave your home on the market too long; an appraisal can help with that. If you're buying, it makes sure you don't overpay. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. Simply put, a home is often the single, largest financial asset anybody owns. Without knowing its real value, wise financial decisions are impossible.

Home inspectors do not come to an opinion of value and are not appraisers.  Also, appraisers are NOT home inspectors.  A third-party home inspector will inspect the structure of the home, from the top to the bottom. The general house inspector's report will contain an evaluation of the integrity of the home's heating systems, 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.

The main purpose of an appraisal report is to let the reader know the value of the real estate in question, and depending on the scope of the report, one will customarily see the following:

• The client and other intended users.
• The intended use of the appraisal.
• The reason for the assignment.
• Precisely what "value" attribute is being reported and what that value      means.
• The effective date of the appraisal.
• Pertinent property characteristics, including: location, physical attributes, legal attributes, economic attributes, the property rights valued, and non-real estate items included in the appraisal, such as personal property,      permanent equipment installations and even intangible items.
• All known easements, restrictions, encumbrances, leases, reservations,      covenants, contracts, declarations, special assessments, ordinances, and      the like.
• Division of interest, such as fractional interest, physical segment and partial holding.
• The scope of work considered when completing the appraisal.