07/11/2014
Here at Appraisals By Silvana, I have extensive experience in appraising homes, 23 years. A home appraisal is the most important thing to be done when you want to know the value of your home.
How It Works
There are two basic appraisal methods for residential properties: sales comparison approach and cost approach. In the former, the appraiser compares the property in question with a few other homes of similar specifications that were recently sold in the area. The analysis involves specific components like square feet, lot size, finished or unfinished space, age and style of the home as well as other features like fireplace and garage.
The Appraisal Report
The appraiser collects information to make the report from several sources. The process usually begins with a thorough physical inspection of a property. The appraiser would also look at the records with the local authorities and go through recent reports of estate listing services.
The home appraisal report is likely to include the following:
◾Explanation of how the home appraisal company determined the real value of the property.
◾The condition and size of the house and its various other permanent fixtures as well as a description of the improvements that were made and the materials used for the purpose.
◾A statement of any serious structural problems like cracked foundations and wet basements.
◾Notes on the surrounding areas like whether it is an established neighborhood or a new development, rural acreage and similar issues.
◾Evaluation of the latest market trends in the area that is likely to affect property valuation.
◾Comparative market analyses that corroborates the appraisal.
◾Photographs, maps and sketches.
Home appraisal is not the same as home inspection. While buying or selling a home you can hire an experienced inspector for pointing out potential problems that may compound in future. Property appraisers, while noting the obvious issues, won’t check the chimney, the plumbing, or the air and heat.
