Residential Appraisals
A residential appraisal is a defensible and carefully documented opinion of value. An appraiser provides a professional, unbiased view of market value to be used in making real estate decisions.
The appraiser must be an objective third party who has no financial or other benefit to any person involved in the transaction. Homeowners need appraisals or appraisal reviews for various reasons, including a mortgage refinance, tax appeals, estates and litigation.
Residential Appraisal Process
Appraisers present a formal analysis in the appraisal reports. The appraisal can include many things, depending on the property type, scope of work, use and user of the assessment. The report aims to convey the estimated value of the subject property.
The two most common appraisal methods used for residential properties include:
- Sales Comparison Approach — The appraiser estimates the property's market value by comparing it to properties sold in the area. The appraisal identifies properties with a similar location, building size, type of construction, number of bedrooms, finished basements, structure quality and number of garages. Each property is unique, so the appraiser must adjust the comps to align features with the subject property. The result is a figure that shows what each comp would have sold for if it had the same components as the subject.
- Cost Approach — The cost approach is most useful for new properties where the building costs are known or can be supported using data. The appraiser estimates how much it would cost to build a replica and depreciates the cost for physical, functional and economic obsolescence factors. This total is then added to the value of the land.
Residential Appraisals Services
The State sets regulations regarding licensing and certification of real estate appraisers. Once an appraiser is certified, additional continuing education courses are required to keep the license current.
At Assessment Evaluation, we are licensed real estate appraisers actively involved in every appraisal process step. We provide objective, impartial and unbiased opinions about the value of your property. We conduct residential appraisals for estates, estate planning and other circumstances.