For most people purchasing a home is not only the largest investment they will ever make, but also the most stressful. No matter what kind of property or for what use it is being purchased, real estate transactions can be complicated with multiple phases requiring the help and services of many people.
Realtors act as the communicators between the buyer and seller. Mortgage companies provide the financial services required to see the transaction through. Lawyers ensure that all the legal necessities of the transaction are met and that the buyer receives a clear title to the property when the sale is finally complete.
In the midst of all this activity a question needs to be asked: Does the price being asked for this property accurately reflect its value? The purchase of a home is too significant an investment not to take the time to discover the answer to this important question.
An appraisal is the tool that buyers and sellers can use to get an unbiased and clear estimate of a property’s true value. Appraisers are able to offer a clear picture of the value of a property based on objective criteria, which they use to determine what kind of a price the seller could expect to receive or the buyer pay for that property.
A real estate appraisal begins with an actual inspection of the property. An appraiser is expected to visit the location of the property being appraised in order to assess that what has been described about the property is true. The appraiser ensures that details of the property are accurate. For example, the number of bedrooms and bathrooms is confirmed, the type of windows installed, the roof is on etc… The appraiser also takes note of the appearance of the property in order to communicate whether or not it is in an acceptable condition for purchasing as the buyer would expect. The inspection also usually includes a confirmation of the square footage of the structures on the property. As the appraiser inspects the location they are looking for obvious factors that will affect the actual value of the property, whether positive or negative.
After the actual inspection of the property the appraisal enters the next phase in which the appraiser uses several methods to make an accurate estimate of the true value of the property: cost approach, sales comparison, and income approach.
If you have obtained a copy of an appraisal for your home and would like a second opinion we can review the appraisal for you. This may save you time and further expense as you will not have to wait for a second new appraisal. In a field review of your appraisal we will confirm the appraisal’s accuracy as well as provide a field inspection of the subject and review information about the comparable properties in order to double check the determination of the appraisal and the conclusions on value that it has come to.
In an appraisal desk review we will use our resources to ensure that the facts in your appraisal are accurate so that you can be assured that you have received an appraisal that you are comfortable with and can trust as you move forward in selling your home.
Using the sales comparison approach, an appraiser begins to factor in the value of such things as location and amenities. Appraisers consider the impact of the features of an area on the value of a property. Such features can include proximity to schools or busy roads, anything that the appraiser understands will have a direct effect on the value of the property. Next the appraiser researches all recent sales in the area in an attempt to find properties that are similar to that being considered for purchase. These comparable sales are used to help determine whether the purchase price being asked is in line with the recent market activity. Appraisers take into account details such as the value of square footage, type of flooring, views, number of bathrooms etc…and ensure that those values are included in the comparison approach by adjusting their report to reflect those details. This may mean for example that if the property to be purchased includes a detail like an extra bathroom that other comparable properties do not, the appraiser could adjust the value by a certain margin.
When applicable the income approach is also used by an appraiser to take into consideration what kind of income a rental property generates and how that affects the actual value of the property.
Once the appraiser has researched, collected, and considered the information from the different approaches they are ready to undertake the task of determining a reasonable estimate for the actual market value of the property. This appraised value provides all parties involved in the buying and selling of the property with a clear guideline for its market value. Appraisals and appraisers provide a clear picture of the property value enabling buyers and sellers to make well founded decisions when it comes to their real estate transactions.
Urban Valley Appraisals (UVA) has been set up as a virtual office to create the lowest carbon footprint possible for running business. Unless requested by the client, all communication is digital including the delivery of appraisal reports.
Although UVA has a virtual office, at times it is necessary (and beneficial) to meet clients face to face to discuss difficult assignments and assess specific needs. We are available to meet at the client’s place of business or at a suitable alternate location.
