I am looking into getting an appraisal and would like to what what to consentrate on before the apprasier gets to my house.
Tags: Appraisal, Constitutes, Home, What
I am looking into getting an appraisal and would like to what what to consentrate on before the apprasier gets to my house.
Tags: Appraisal, Constitutes, Home, What
December 16th, 2009 at 4:24 pm
There are many types of appraisals. A “full” appraisal, and “Drive By” or exterior-only appraisal, a “Desktop” appraisal and now there are even computer appraisals, or AVM’s. It sounds like you are getting a full appraisal so that’s what I’ll go with. That’s the most complete level of analysis and will yield the most accurate esimate of value.
An appraisal is a delicate process by which an individual estimates the value of a property. In doing so, the first step is to evaluate the property. This means an inspection by the appraiser, inside and outside for the most accurate appraisal. An appraisal inspection is different than a property inspection; the level of detail will depend on the individual appraiser. They know what to look for to complete their analysis. A measurement of the house will be done to verify the square footage. The appraiser will note the floorplan, benefits, amenities, deficiencies, quality and recent updates and improvements to the house and property. The appraiser will also be taking many photos.
The next step in most appraisals is to compare you house to other houses in the market area that have sold recently and are most similar to yours and adjust the sale prices for the various differences. These are usually called “comps”. The selection of the comps and adjustments to the sale prices will yield a value estimate of your property.
Keep in mind that an appraisal is just one opinion. If you called 5 appraisers, you’d likely get 4 opinions. The good thing about opinions is that there is no right or wrong answer, only different. You may or may not agree with the appraiser, but that’s not their job to make you happy. Their job is to formulate an opinion of value based on facts, develop opinions with justifiable and reasonable logic, and be able to stand behind their value when the bank makes the loan.
In order to prepare, depending on your timeline, here’s what you should do:
Fix what’s broken
Remove trash and clutter from the house and yards
Clean up everything inside and out
Make the property look like somebody really cares about it
Make a list of what’s new, improved, replaced or special about your property for the appraiser
December 16th, 2009 at 11:13 pm
It depends who is asking for it….If you are asking for it, they will come in and look at the general condition and size of your home, and try to assign a value to it. They look at everything, doors, windows, walls, floors, electrical, basement, plumbing, wiring….
If a bank does it, sometimes they just count the square feet, and what the avg price per sq ft is in your area, and thats your value.
I bought a foreclosure, and the bank just took one picture from the outside, and didnt even come inside…they were satisfied from the picture that the house was sufficient collateral to cover the mortgage