Buying and Selling Real Estate is among the largest and most complex transactions most people will ever make, and many turns to a professional certified appraiser to provide them with the most accurate opinion of the true value of the property under consideration. The role of the appraiser is to provide an objective impartial an unbiased opinion about the value of the property, including what a buyer might expect to pay as well as what the seller might expect to receive for a parcel of real estate. Most appraisals are reported in writing, although in certain circumstances an Appraiser may provide an oral appraisal.
A written appraisal generally includes a description of the property and it’s locale, an analysis of the highest and best use of the property, an analysis of comparable sales, information regarding current real estate activity and or trans within the market area, flood and census data, complete floor plan sketches and physical measurements of the exterior of the dwelling by a roller tape or laser measuring tool to establish the total gross living area GLA of the house, neighborhood maps, tax maps, zoning maps.
The relevant legal, physical, and economic factors are analyzed to the extent that is necessary to result in a conclusion what is the current use of the subject property and it’s the highest and best use, Legally permissible use, Financially Feasibility, Maximum productivity and Physically possible.
The appraisal typically starts with an inspection of the property in order to verify its condition, total living area, number of bedrooms and baths, finished or unfinished basement, observing amenities that contribute to the subject property value, as well as determine if any adverse external factors are present such as closer immediate proximity to freeways, busy traffic arteries, high-voltage power lines and others that may have an adverse effect on the value of the property.
The inspection usually includes a measurement and subsequent sketch of the property, and during the inspection, the appraiser also notes any additional features or defects that may affect the property’s value in either a positive or negative manner. After inspection, the appraiser uses two or three different approaches in developing credible verifiable appraisal report to determining the value of property including a sales comparison approach, a cost approach and in the case of investment or rental properties an income approach.