The appraisal begins with a phone call or an email to the
appraisal office. A phone call is then required in order for the appraiser
to get information about the property to be appraised and the reason for the
appraisal. At that time an appointment can be set up for the inspection,
and payment terms can be agreed upon. Sometimes a client will ask about a
possible value when ordering the appraisal. The appraiser does not know the
value of the subject property at this time and cannot promise any value.
It is possible for the appraiser to look up recent sales for similar properties
in the subject area and indicate the price range of recent sale.
Upon arriving at the property, the appraiser first
analyzes the neighborhood and the street where the property is located.
Any nearby external influences such as train tracks, power lines or busy traffic
noted. The appraiser takes photos of the street and the property exterior
that will go into the report. The appraiser then measures the exterior of
the property (or interior if necessary). He collects information about the
property's site, construction, style, condition and amenities. Amenities include
such items as parking, garage, fencing, patios, decks and swimming pools.
Next the appraiser inspects the interior of the property.
Photos of every room are taken, including the basement. Notes are also
taken for later analysis. the appraiser observes the size, condition, upgrades
and amenities of the property. He notes such features as fireplaces,
finished basements, 2-story areas, modern kitchens, types of floor covering, etc.
The appraiser then drives around the neighborhood and
surrounding areas to look at recent sales and current sales listings. He
takes photos and makes notes about the recent sales for further analysis.
The appraiser attempts to use comparable properties that are similar in size, style,
age and condition to the subject, that have sold within six months prior to the
appraisal date and which are within one mile distance from the subject.
Back at the office the appraiser analyzes all
information and types the reports. Information regarding comparable
properties is obtained from exterior inspection, real estate MLS listings
and public records. Information can also be obtained from people involved
in the sale of these properties. Value adjustments are then made based on
differences between the subject and the comparable properties. Sales data
, cost and income value approaches are taken into account. Final
reconciliation and verification of data are then done as part of the
determination of value. Upon completion of the report, contact is made with the
client, and the report is emailed, faxed, or mailed to the client.