FREQUENTLY ASKED QUESTIONS
Finding the value of your home can be lengthy and time consuming. At Certified Appraisals we are certified, trained and experienced in the industry and have a keen eye for detail, knowledge and history to understand the value of a home. Below are some frequently asked questions about appraisals/services.
– What is an appraisal?An appraisal is a written document that estimates a property’s market value and is to be completed by an appraiser. See “who completes an appraisal?” to get more information on appraisers. The property’s market value is based on the appraiser’s analysis of recent sales for properties that are similar to the subject property, located in the same market area.
– Who completes an appraisal?Appraisals are completed by a Licensed or Certified Appraisers, whose job is to provide an objective, unbasis and professional analysis of the market value of the home.
What to Expect During Your Home Appraisal?You can expect the appraiser to take photos of the interior and exterior of your property. These photos are used determine the overall condition of the home. Lenders rely on these photos for verification, as well as confirmation on room counts and amenities inside and outside of the home. The appraiser will also measure the exterior of a home to estimate the square footage of the living area. Non-living areas; such as porches, patios, basements and garages, are not used in this square-footage calculations, but are noted on the report.
– How is the value determined? There are three approaches to value Sales Comparison Approach;Is the process of comparing the subject property to other properties which are; similar in size, quality, condition, location, and overall market appeal, generally recent closed sales. Adjustments are made for the differences by adding or subtracting amounts to the competing sales. The adjustments are determined through market data and reasonable reactions for the differences. The final value is estimated based on the weighed outcome.
Cost Approach:This is an estimate of what it would cost to replace or reproduce the home/improvements as of the date of the appraisal, with deductions for depreciation, and other site factors. Land value is added into this calculation to determine the value of property.
Income ApproachIs typically for rental and commercial properties and is not a relevant factor for residential type properties.
– Why is an appraisal required? Lenders require an appraisal to help determine the loan amount. Since home values can vary considerably, it is important for lenders to have the objective opinion of an appraiser to make sure the loan will be secured by the property. Lenders will not lend more than the value of a home. Appraisals are used to determine ratios that help factor into the loan approval process, most commonly known as loan to value (LTV).
– What property factors determines the value?There are several factors that the appraiser takes into consideration when calculating the value of your home. The general condition and age of the home, size of the home, size of the lot, location, number of bedrooms, bathrooms, updates or remodeling, design elements, and site improvements such as pools and accessory units. We are happy to answer any questions you may have. call 209-551-8643
– What is an appraisal?An appraisal is a written document that estimates a property’s market value and is to be completed by an appraiser. See “who completes an appraisal?” to get more information on appraisers. The property’s market value is based on the appraiser’s analysis of recent sales for properties that are similar to the subject property, located in the same market area.
– Who completes an appraisal?Appraisals are completed by a Licensed or Certified Appraisers, whose job is to provide an objective, unbasis and professional analysis of the market value of the home.
What to Expect During Your Home Appraisal?You can expect the appraiser to take photos of the interior and exterior of your property. These photos are used determine the overall condition of the home. Lenders rely on these photos for verification, as well as confirmation on room counts and amenities inside and outside of the home. The appraiser will also measure the exterior of a home to estimate the square footage of the living area. Non-living areas; such as porches, patios, basements and garages, are not used in this square-footage calculations, but are noted on the report.
– How is the value determined? There are three approaches to value Sales Comparison Approach;Is the process of comparing the subject property to other properties which are; similar in size, quality, condition, location, and overall market appeal, generally recent closed sales. Adjustments are made for the differences by adding or subtracting amounts to the competing sales. The adjustments are determined through market data and reasonable reactions for the differences. The final value is estimated based on the weighed outcome.
Cost Approach:This is an estimate of what it would cost to replace or reproduce the home/improvements as of the date of the appraisal, with deductions for depreciation, and other site factors. Land value is added into this calculation to determine the value of property.
Income ApproachIs typically for rental and commercial properties and is not a relevant factor for residential type properties.
– Why is an appraisal required? Lenders require an appraisal to help determine the loan amount. Since home values can vary considerably, it is important for lenders to have the objective opinion of an appraiser to make sure the loan will be secured by the property. Lenders will not lend more than the value of a home. Appraisals are used to determine ratios that help factor into the loan approval process, most commonly known as loan to value (LTV).
– What property factors determines the value?There are several factors that the appraiser takes into consideration when calculating the value of your home. The general condition and age of the home, size of the home, size of the lot, location, number of bedrooms, bathrooms, updates or remodeling, design elements, and site improvements such as pools and accessory units. We are happy to answer any questions you may have. call 209-551-8643