Basics Your property appraisal is a formal report issued by an appraisal professional. It indicates what your property is currently worth, along with the proper documentation for this conclusion. Appraisal The appraiser usually makes a physical inspection of the property. Some appraisals are "drive-by" appraisals, but most appraisers usually enter the property. They document in detail different details about the property and surrounding community. They will measure the size of the property, the construction materials used, and the current state of the property. Appraisers usually take pictures of the interior and exterior of the property to include in their appraisal report. Final Appraisal Value They will use several methods to come to a conclusion about your property value. One of the strongest factors is the relative value of your property to other nearby properties with similar features. The appraiser will evaluate different factors in your property and compare them to related properties. This appraisal report is handed in to the lender. The lender will double check the appraisal and adjust it if necessary. Some lenders will send out their own appraisers to double check the appraisal. Many just evaluate the appraisal report. The Appraisal Session When an appraiser visits your property it is generally a good idea to be prepared. Since they will be including color pictures of the interior and exterior of your property you should try to have the pictures be nice and presentable. If you have a broken car in your driveway, you may want to remove this. Similar obstructions or eyesores around your property may make your property look like it is worth less than it should be. Making the appraiser's job with a neat property is in your best interests. Appraisal is not an exact science. It can be subjective. There is usually a little leeway in how a property is valued. A happy appraiser may give you the benefit of the doubt. |
