Our appraisal process

Our process is called the Sales Comparison Approach to value and is the most frequently utilized approach as it is considered to best reflect the actions of buyers and sellers in the subject market area. This process is the same for a full appraisal, exterior only appraisal, and/or a land appraisal. The most significant difference in these types of reports is the extent to which the subject property is physically observed by the appraiser. 

The first step in our appraisal process is to define the problem in order to determine the purpose and or intended use of the appraisal report.  This gives us a road map identifying the necessary work involved in order to competently complete the assignment.  After we complete the first task, we begin the process of gathering information on the subject property (property to be appraised), using numerous pieces of available market data.

All residential properties that are marketed and sold through a real estate company are entered in the local Multiple Listing Service (MLS).  As a member of the professional licensed real estate community, we have access to a multitude of market data via this resource (local MLS).

The Sales Comparison Approach to value is completed and presented to the client in compliance with the procedures set forth by the Uniform Standards of Professional Appraisal Practice (USPAP).  In accordance with USPAP, the report cannot be submitted in a subjective manner and must be impartial.

01

Gather recent comparable sales

We gather recent comparable sales data in the subject market area that are determined to most accurately encompass the subject property in all terms such as lot size, gross living area, age, condition, bed/bath count, and location.

02

How we present comparable data

We set up for review a sales grid in which the comparable sales are compared to the subject property in a side by side presentation. 

03

Determining adjustments

We determine the extent of adjustments by applying standard industry approved appraisal techniques combined with a statistical analysis of market data provided by the local MLS.

04

Apply adjustments

We apply adjustments to the sale price of the comparable sales in order to account for significant differences between the subject property and the comparable sales, such as variances in gross living area or condition. The extent of the adjustments are determined by profesional appraisal techniques that are supportable under USPAP guidlines.

05

Final reconciliation of value

After applying adjustments to the sale price, we use our professional experience and knowledge to assign an opinion of value which falls within a value parameter determined by the adjusted sale prices of the comparable sales.

Full appraisal

For a full appraisal, we physically measure the dwelling being appraised in order to more accurately determine the property’s gross living area.  In addition, when completing a full appraisal, we can more accurately observe and note the condition of the property, including any improvements or updates completed to the property and/or any deferred maintenance or repairs in need of attention.

Exterior only appraisal

For an exterior only appraisal, we simply drive by the property to be appraised and note its condition including any major deficiencies or damage to it.  The exterior only appraisal takes into consideration any factors that could affect value via what is readily observable from the street in the vehicle solely.

Land only

For a land only appraisal, the property is physically observed in order to note any attributes that can contribute to the overall value of the land such as creeks, rivers, lakes, or improvements such as barns or workshops. The appraiser takes photos of the land along with any of the previously mentioned attributes before proceeding with the appraisal process. Just as in the case of full appraisals and exterior only appraisals, the sales comparison approach to value is utilized in order to provide an opinion of fair market value of the land for the client.

Gross living area verification

The appraiser physically measures your dwelling. Such measurements are then utilized to calculate your property’s gross living area via professional appraisal sketching software.