Perpare for an Appraisal

How to Perpare for an Appraisal

There are several factors that can affect the appraised value of your home, including whether or not:

• It is well maintained inside and out
• It is located in a good school district
• Additions fit well into the existing house
• Properties throughout the neighborhood are well maintained
• It is the largest house on the block (or the most improved)
• The style of the house conforms with those in the neighborhood
• Zoning changes are expected

For those items listed above that you can improve on, such as maintaining your house (which includes repairing leaky faucets, painting over spots on the wall, etc.), it is well worth the effort to do so prior to scheduling the appraisal.

Once you decide to schedule the appraisal, you should try to gather all of the following documents to present to your appraiser upon his or her arrival:

• A plot plan or survey of the house and land
• Your most recent tax bill or a legal description of the property
• Copies of any recent home inspection reports, or other recent reports, such as for termites
• Your abstract of title
• Homeowners Association information and fees
• Property purchase information for the last three years
• All written property agreements that you may have – such as shared driveway maintenance agreement, etc.
• A list of personal property that is to be included in the sell of the home
• A list of major home improvements (including date and permit confirmation, if necessary)
• A copy of the current listing agreement
• A copy of the broker’s data sheet
• A copy of the Purchase Agreement if a sale is pending

Also prior to the scheduled appraisal, you should also make sure that all areas of your home are accessible and that your home is as clean and orderly as possible to make a good impression on the appraiser.

Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, but you should be available to answer questions about your property and be willing to point out any home improvements.

Understanding an Appraisal Report

An appraisal is an estimate of the value of a specific property. The appraisal report is a detailed description of the process the appraiser used to reach the estimated value he placed on the property.

Appraisals can be delivered as an oral report, a letter report, a form or a narrative report. Narrative reports are the most complete appraisal format. A typical narrative report will contain the following sections and information:

• An introduction – which is used to establish the appraisal’s purpose and to state any limitations that may exist

• A factual descriptions section – which may include: photographic identification of the property; area, city, neighborhood and location data; zoning and taxes data; site data; description of improvements; and history

• A data analysis section that includes the appraiser’s opinions – items in this section may include: market analysis; highest and best use of the land, as though vacant; highest and best use of the property, as improved; land value; sales comparison approach; income capitalization approach; cost approach; and reconciliation of the value indications to a final value estimate

• An addendum – that contains a detailed legal description; detailed statistical data; leases or lease summaries; and the appraiser’s qualifications

Reading an Appraisal Report

Each part of an appraisal report should have a distinct purpose and should add to your understanding of the basis for the value determination.

Sections should build on one another and point to the same conclusion. Information used to make adjustments and reconciliation in the last portions of the report should be drawn from earlier sections.

At Humes Realty and Appraisal Service, LLC, we specialize in delivering high–quality appraisals that are easy to understand. We will also answer your questions, provide relevant recommendations, and work with you to resolve any issues that may arise in the quickest, most convenient manner possible.

Source: Barron’s Real Estate Handbook, Third Edition