Appraisal reports are actually very detailed. They include details of the property, the status of the real-estate market where the house is located, flawed characteristics of the house, how long the house has been for sale, and the type of the neighborhood where the house is located.
Appraisers should not be confused with inspectors. Inspectors check the chimney, test appliances, inspect fixtures and recommend repairs to increase the home’s value before putting it up for sale, or before the end of your contract option period.
When determining the value of the property, appraisers use three approaches. First, the value could be determined by the sales comparison approach - by comparing the property with other similar properties in the area. Second, the cost approach- determining and identifying needed improvements in the property. Finally, the income capitalization approach where the value is determined by the potential operating income that can be earned from the property. The sales comparison approach is most common in purchasing a home.
When choosing an appraiser, verify his background and identify if they were able to meet state licensing requirements. Appraisers have strict standards and codes they must abide by as well.
Janus Real Estate Group * Heather Anderson * 972-765-3773
