A real estate appraisal is an unbiased estimate of the value of a property, usually performed by a licensed real estate appraiser.
For an appraisal, what exactly constitutes "comparable properties"?
A comparable property, also known as a “comp,” is a property that is similar to the subject property being appraised in terms of location, size, age, condition, and other relevant factors. Appraisers use comparable properties to help determine the value of the subject property, by analyzing recent sales of similar properties in the same or a similar neighborhood. The appraisal process involves selecting and analyzing multiple comparable properties to help the appraiser arrive at an estimated value for the subject property.
Comparable properties, or “comps”, are properties that meet the following conditions:
- Similar in type, style, room/bedroom count, location, size and utility to the subject property that do not cross major highways or other dividing markets
- An appraiser looks at the most recent comparable sales in the last three months, if there are no comparables, he extends to the last six months, and if there are none, he extends to the last twelve months. A more recent proximate comparable data base improves the accuracy of appraisals.
- Data from comparable properties within a mile radius is often preferred if it is available. It is more likely that an accurate appraisal will be obtained if the comparable properties are similar to and close in proximity to the subject property.
Why do I need a real estate appraisal?
- A real estate appraisal is often necessary when buying or selling a property, refinancing a mortgage, or for estate planning purposes.
- For buying or selling a property: A real estate appraisal can help you determine the fair market value of a property, which can help you make informed decisions when buying or selling real estate.
- For refinancing a mortgage: If you’re looking to refinance your mortgage, your lender may require an appraisal to determine the current value of your property and ensure that the loan-to-value ratio is appropriate.
- For estate planning purposes: An appraisal can help you determine the value of real estate assets for estate planning purposes, including probate, inheritance, and gift tax purposes.
- For property tax purposes: Real estate appraisals are sometimes used by local governments to determine the value of properties for property tax purposes.
- For insurance purposes: Real estate appraisals can also be used to determine the replacement cost of a property for insurance purposes, ensuring that you have adequate coverage in the event of a loss.
- For legal disputes: Real estate appraisals can be used as evidence in legal disputes, such as in cases of divorce or property disputes between neighbors.
- For investment purposes: Real estate appraisals can help investors determine the value of properties they are considering for purchase, as well as the potential return on investment.
How do I schedule an appraisal?
If you would like to schedule an appraisal or request a quote for your real estate appraisal needs, please call or text 908-517-3913 or use our contact form on our website: https://newjerseyrealestateappraisal.com
How long does an appraisal take?
Depending on the size and complexity of the property, the on-site appraisal inspection can last anywhere from 20 to 40 minutes. Typically, reports are emailed to clients within 5-7 business days after the inspection, in PDF format. If you are in need of a rush real estate appraisal, please contact us.
How much does an appraisal cost?
Residential property appraisals typically cost $300–$600, although this can vary based on factors such as location, size, and complexity. If you have questions about commercial properties, please feel free to contact us.
What factors affect the value of a property?
The value of a property is determined by a variety of factors, including its location, size, condition, amenities, and recent sales of comparable properties in the area.
What should I do to prepare for an appraisal?
Homeowners have minimal involvement and minimal responsibilities. Being present at the appointed time will allow easy access to the property. The on-site appraisal inspection includes taking measurements of the home’s exterior with a measuring tape, taking photographs of the home’s exterior and interior, sketching the home’s floor plan, and talking to the homeowner about any recent upgrades or renovations made to the property, as well as any issues with the infrastructure and utilities that could affect the home’s value. A house appraisal requires taking pictures, so no animals or people should be in the pictures. The best way to get the highest market-supported opinion of market value is to maintain your house in good condition and disclose any upgrades or renovations.
How do I interpret the real estate appraisal report?
A real estate appraisal report will include an estimated opinion of value for the property as well as information on how that value was arrived at and any relevant market data. Call the real estate appraiser or consult your lender or real estate agent for clarification on any points you don’t understand in the real estate appraisal report.
Can I dispute the appraisal?
If you think the appraisal is wrong, you can ask for it to be reviewed or provide more evidence to back up your claim. There is no guarantee, however, that the appraisal will be revised.
How often do I need to get an appraisal?
The frequency of appraisals depends on your specific situation, but they are typically required when buying or selling a property, refinancing a mortgage, or for estate planning purposes.