Real Property Appraisal: A primer
In the case that your home or property becomes an asset you need for a property or jail bond, approaching the process in the correct manner is very important. Regardless of why you need to begin this process, make sure to find the right team of experienced professionals to do it right.
If you are in the position of requiring an appraisal for a property or jail bond, it is important to include all of the proper experts. The bank will play an important role in providing he necessary capital to bankroll the deal. A title company may be asked to oversee the process and ensure that the title is in the right hands.
So, whose job is it to make sure the appraised value and the property value are the same? This is the job of the appraiser. What we do is give you a neutral valuation of your property in order to determine the value that will be used for your bond. You will stay informed of what we are doing as we move through the process. One of our skilled Pennsylvania certified appraisers at The Appraising Group will keep you well informed.
INSPECTING THE SUBJECT PROPERTY
The first thing we at The Appraising Group do is inspect the property in order to learn of its true status. What we will do is physically evaluate the home for what amenities it has, how many bedrooms and bathrooms there are and note the condition and status of the entire property. A number of inspectors choose to create sketches as a way to show the properties actual size, location, layout and floor plan. One of the most import parts of the process is for the assessor to note anything that could affect property value, such as defects or other issues.
After the property has been inspected, we will then apply two or three calculations in order to find the value of the property being appraised. Most often we apply a paired sales inquiry, a replacement cost estimate, and an income methodology if rental properties are prevalent.
ANALYZING COMPARABLE SALES
One of the things that sets us apart is our knowledge of where you live. We are experts at understanding what local buyers want in a home. If your home has these items we make sure that this value is reflected in the end valuation. These can be things like a beautiful view, a backyard pool or plenty of outdoor living space. This information is applied to a list of recent real estate transactions in your area. This list of “comparable” properties helps our experts pinpoint the exact valuation of your home.
- If a comp possesses a significantly larger master bedroom that the subject property lacks, the evaluator will subtract the value of the extra space from the selling price of the comp.
- However, should the subject property be the property with the plush master bedroom, the appraiser could then add the value of the bedroom to the comp price.
Our group has expert knowledge about the importance of specific real estate details in Pennsylvania. This allows us to truly deduce the worth of your home.
COST
APPROACH
By applying this method the assessor can calculate the cost of building the property being appraised in the market today. Adding the likely cost of materials, labors and other parts of the process they can arrive at the maximum the home might sell for. Although this method yields interesting information, it is not commonly used.
VALUATION USING THE INCOME APPROACH
By using a number of local rentals, an expert may be able to determine the value of your property. When this method is employed, the assessor compares the income generated by the property and compares this number with comparable rentals in the area. This leads to a fair market valuation.
ARRIVING AT VALUE CONCLUSION
Balancing the data gathered from each of these approaches will allow your appraiser to specify the fair market value for the property being assessed. The financial institution will use this valuation, as well as other data about your current situation to make a decision about the property or jail bond. This estimated value is important for the bank to determine how much the property might recoup in the event that they must resell it in the future. Your Appraising Group expert promises that the valuation they determine is the most fair reflection of your homes value.