BEYOND A STANDARD APPRAISAL
No Standardized Forms. We provide you with specially designed forms that are easy to read and understand. We help you discover new ways to use your appraisal and let you know exactly what it provides.
Backed By Data. As licensed professionals, we have access to high end appraisal tools that help us navigate this ever changing market. We go beyond the standard appraisal reporting and use specialized methods to ensure that our estimates are as accurate as possible.
Simple Four Step Process. We use a four step process to determine your appraisal. These steps include:
- Inspection
- Cost Approach
- Sales Comparison
- Reconciliation
STEP 1 - THE INSPECTION
We look for the actual state of the property, features and defects, we note them all.
STEP 2 - COST APPROACH
Estimated the cost to build a similar property
We use information on local building costs, labor rates, and other factors to determine how much it would cost to construct a property to the one being appraised. This value often sets the upper limit on what a property would sell for. Why would you pay more for an existing property than you would if you built a brand new property instead, right?
While there may be mitigating factors, such as location and amenities, these are usually not reflected in the cost approach.
STEP 3 - SALES COMPARISON
Researching recent property sales in the area and comparing the values
This is what many appraisals rely solely on. They become familiar with the neighborhoods in which they work and only come up with an estimate with that knowledge. It’s true, this is a powerful step in the process, but there is more to it than this.
What we do here is after we’ve inspected and estimated the cost to build a similar property, we then analyze the data we have at hand that shows the historical sales of properties going back years. This helps us get an accurate view of the current market trends.
It’s not just about what your property has, it’s what it doesn’t in comparison to the properties that sold before it. We check to see if it has extra square footage, extra bathrooms, hardwood floors, fireplaces or view lots, to name a few. Then we adjust the value of the comparable homes to see how your property stacks up.
STEP 4 - RECONCILIATION
Combining the information from all approaches
Once we’ve gone through step 1-3, we work to compile all these factors into a comprehensive report. From that, we can then stipulate an estimated market value for your property. It is important to note that while this amount is probably the best indication of what a property is worth, it may not be the final sales price.
There are always mitigating factors such as seller motivation, urgency or “bidding wars” that may adjust the final price up or down. The appraised value is still an important guideline for lenders who don’t want to loan a buyer more money than the property is worth.
We will help you get the most accurate property value so you can make the most informed real estate decisions.
