|
 THE APPRAISAL The appraisal process consists of several steps. The following are the major steps in the sequence normally followed by appraisers: • Research the subject property as to size, bedrooms, baths, year built, lot size and square footage. • Gather data of recent sales in the subject's neighborhood. The appraiser needs to locate at least 3 and preferably more similar-sized homes which have sold and dosed escrow in the neighborhood. The homes need to be within one mile of the subject property and sold within the past 6 months. These homes are considered the "Comparable Properties" or "Comps" for short. • Field inspection consists of two parts: first the inspection of the subject property, and second, the exterior inspection of the comparable properties which have been selected to estimate the value of the subject property. The subject inspection consists of taking photos of the street scene in front of the home and rear of the home that may include portions of the yard. The appraiser will make an interior inspection for condition, noting any items that would detract from or add to the value of your home. He will also draw a floor plan of the home while doing the inspection. The inspection of the comparable properties is limited to an exterior inspection. For features that cannot be seen from the street, the appraiser has reports from Multiple Listing Services (MLS), California Market Data Cooperative (CMDC), county public records, and appraisal files along with other sources to help determine the condition and amenities of the comparable. After the field inspection has been completed, the appraiser must determine which comparable properties most resemble the subject, making slight adjustments in value for any differences between them. After making the required adjustments, the appraiser will go through the reconciliation process with the three comparable properties to determine a final estimated value. This method of estimating value is called the "Direct Sales Comparison Approach to Value," and it accounts for nearly all of the considerations in determining value of single family homes. An appraiser will call in advance to set up an appointment. At that time, offer to supply any information about the home's size, number of Bedrooms, bathrooms, pool, enclosed patio, etc .. The more that is known about the property prior to the inspection, the better the appraiser can focus on researching the most similar comparable. "Doing your homework" will maximize your chances of having a good appraisal. While your home is being inspected, do not follow the appraiser from room to room causing distraction. Instead, allow the inspection to go smoothly. In case the appraiser has any questions, be close by to answer them. The time to mention the things you think are important is either before or just after the inspection |
