The Appraisal Process
When Residential Resource Group, LLC receives an appraisal request, we thoroughly research the subject property to be appraised by printing tax record data, any past appraisal physical data, Deed transfer data and FMLS(First Multiple Listing Service) data. This data informs your appraiser of the style of the home, quality of construction, year the home was built, size of the lot and other physical characteristics of the home.
After learning about the subject property, John Warren-“JW” will begin researching the market for the best available comparable sales from the past year. This search starts by first looking on the same street, then in the subject subdivision and finally outside the subject subdivision in a one mile radius. Most weight will be placed on the most recent comparable sales within the same subdivision as the subject property, that are similar in design, year built and heated square footage or GLA(Gross Living Area). If performing a Pre-Listing appraisal, current listings will also be added to the report to show similar homes for sale as of the date of the appraisal.
John Warren-“JW” will then call the homeowner to set a time to schedule the appraisal inspection. The inspection normally takes about one hour and consists of taking interior and exterior photographs, measuring the home for square footage purposes and visually inspecting the site. All comparable sales and listings are also photographed and visually inspected from the street.
Upon returning to the office the appraiser then keys in all data into the report form, draws the sketch on a CAD system, locates the sales on a location map, researches flood map data and then applies the proper value approaches to accurately estimate the current market value of the subject property. Adjustments are made for the differences between the subject property and comparables used, then after adjustment, the appraiser estimates the current market value based on the range of adjusted values.
The appraisal is then sent to the client via email in a PDF format. The information in the appraisal report is then used by the client for the intended purpose only. If you would like a copy of your appraisal report, the client(person that ordered it), will provide you with one.
Helpful tips to assist your appraiser include:
- Have a copy of your warranty deed and site survey available for “JW” to review at the time of your property inspection.
- The night before the inspection, make a list of all the upgrades you have done to your home since you moved in and have this list ready to give “JW” to take after the property inspection is completed. It is important to remember that cost does not create value, but this list can help “JW” to verify his notes about your home.