The Appraisal Process
Determine the true standing of the property
as it stands.
Physically identify the various features to
ensure it meets reasonable expectations.
(# of bedrooms and bathrooms, physical
location of the home)
Provide a sketch of the property with a true
reflection of proper square footage and
layout of the property.
Distinguish obvious defects or features that
would have a large impact on the value of
Data Collection & Analysis
Specific data is gathered during the
(i.e. Location, condition, amenities, size, etc.)
General data is gathered from various
Local Multiple Listing Services – provide
data on recently sold homes that might be
use d as comparables.
Tax records and other public documents
verify actual sales prices in a market.
Flood zone data is gathered from FEMA data
outlets, i.e. InterFlood
The appraiser’s past experience in creating
appraisals for other properties in the same
Determination of the appropriate
approach to value.
Cost Approach – Determination of the cost to replace the home, less physical
deterioration and other factors, plus
the value of the land.
Sales Comparison Approach
– Making a comparison to other similar,
nearby properties which have recently
This is normally the most
accurate and best indicator of value for
a residential property.
Income Approach – Used primarily when appraising
income producing properties - it
involves estimating what an investor
would pay based on the income produced
by the property.