Why is an appraisal important?

An appraisal is important because it is an independent, professional, impartial and objective opinion of value based on current market information.  When completing any appraisal assignment, our appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP).  When you enlist the services of an appraiser, you are retaining the service of an independent professional that has no vested interest in the valuation.  Appraisers will present you with an opinion of value based on proven methods, knowledge and experience.   

How accurate is an appraisal?

Appraisals are opinions of value, therefore appraisal reports can vary from appraiser to appraiser.  However, every appraiser utilizes consistent methods and approaches when determining this opinion of value, therefore these opinions of value should not differ significantly. 

What is the difference between a restricted use appraisal and a summary appraisal?

Essentially, the difference between the two types of reports is the level of detail contained in each report.  A restricted use report is a condensed report that does not always include a physical viewing of the property.  This type of appraisal will analyze recent sales data of comparable properties in order to determine a value range for the subject property.  A complete summary appraisal is a more comprehensive appraisal that utilizes the same approach, however more technical and detailed information about the subject property is analyzed.

What important factors contribute to the appraisal process?

An appraiser takes many factors into consideration when determining an opinion of value for a property.  Appraisers use a holistic approach and consider factors including the style of home, square footage, size of lot, neighborhood, age, etc.

What specific features can add to the value of the property?

There are many factors that can add to the value of your property such as a well designed floor plan, up to date maintenance, presentation and proximity to amenities.  Some of the factors that can decrease the value of your property include a poorly designed floor plan, lack of maintenance and poor location. 

What is the difference between a market evaluation and an appraisal?

An appraisal is an objective and impartial report that determines an opinion of value prepared by a licensed professional in accordance with Uniform Standards of Professional Appraisal Practice (USPAP). A market evaluation is a comparative analysis usually prepared by various market professionals.

 What is the difference between an Automated Valuation Model (AVM) and an appraisal?

An AVM is a computer based program that models and analyzes the current market trends based on property records, MLS data and other various sources in order to determine a value range for a subject property.  AVMs can be useful tools, however, since these reports are generated by computer models there is a larger potential margin for error.  An appraisal utilizes the same data, however, each report is prepared by a licensed professional.  The appraiser carefully analyzes every aspect of the report in order to ensure accuracy.

Is the client obligated to list their property within the price range provided by the appraisal?

The appraisal is to be used as a guide to assist the homeowner in the determination of a listing price.  It is solely up to the owner to decide on the final listing price.

Why is the value arrived through an appraisal sometimes different than the homeowner’s expectations?

Since appraisers use recent sales data, the appraisal report may not reflect current active listing pricesm since active listing have not sold on the open market thay do not always represent the actual market value of the property.  Sometimes the price that homeowners sell their properties can be a much different number than the price they originally set.