A home purchase is usually the largest, single investment most people will make in their lifetime. The purchase of real estate is a complex transaction. An appraisal is an unbiased estimate of what a buyer might expect to pay for a parcel of real estate.
Our appraisers research the property looking for things like, whether it has been listed or sold in the past 3 years, who currently owns the property, taxes paid, zoning information, etc.
Appraisers are responsible for inspecting the property. They look for features like the number of bedrooms, bathrooms, and location to verify that they actually exist and are in reasonable condition. The inspection usually includes measuring the property to ensure the proper square footage. Most importantly, the appraiser looks for any obvious features, or defects, that could affect the value.
The appraiser uses several different methods of calculation then after data collection and analysis, the appraiser reconciles the different calculations to come to a final opinion of value. This final opinion is then sent to the lender.
Want to read more about the Appraisal Process? Download this wonderful Guide to Understanding a Residential Appraisal by The Appraisal Foundation.