WHAT IS AN APPRAISAL

     The appraisal process is a mystery for many people.  The appraisal is often viewed by those unfamiliar with the concept, as something that takes place when some person calls to schedule an appointment to see their home.  This appointment is often arranged by their mortgage lender or loan officer so that they may either purchase, improve or refinance a home.

     A complete and properly performed appraisal inspection of your property should include a thorough examination of all facets of the Subject property that contribute or detract from it's value (estimated market value).  The following is a brief description of the procedures and areas of importance that are generally considered (by those in the industry) to be standard during an appraisal inspection.

     The neighborhood: (also known as market area.)  You probably have heard stated by Real Estate Sales people, the importance of  location, location, location.  this is something that the appraiser also examines.  The appraiser wants to know what makes up your neighborhood.  Is your area all single family homes or is the neighborhood a mixture of one or more types of properties?  Is it stable or is it changing?  The existence of homes, businesses, open land, apartments and industrial property all influence "The Value".

     The Real Estate:  (The Subject Property.)  As was previously mentioned, there are many items associated with the property that the appraiser needs to consider to determine an estimated market value.  Pictures of the front and rear of the improvements (the structures) and the street scene, as well as interior photographs are generally required by most lenders.  The appraiser draws a sketch (to scale) to show the footprint of the structure and the interior floor plan to determine the total living area square footage.  The general "condition" of the exterior and interior of the improvements is noted, as well as the room count (bedrooms, baths etc).  Additional features present such as porches, decks, patios, pool, barns or less obvious items or quality such as tile, stone or hardwood, fireplaces, wood or pellet stoves, air conditioning, extra insulation, better grades of siding or roof and many other items too numerous to mention here are noted.  There are many things present in every home or improvement that need to be included in a residential appraisal report.

     After the appraiser has spent approximately an hour (it varies) and then leaves your property, he or she has much left to do to complete a proper appraisal.  To describe the rest of the appraisal process would be a daunting task within the confines of this site, therefore let me just say each report requires a significant amount of research and examination before it is complete and ready for the lender/client.

     This description is meant for general informational purposes only and is not intended to be a complete outline of the accepted procedures involved in the appraisal process.  I only hope that this has eliminated some of the mystery.