The process of obtaining a home, property or real estate appraisal is simple and straight forward:

Initial research and appraisal fee quote

Call Chas (959-574-5534), our Chief Appraiser, who will ask a few clarifying questions about the property to obtain enough information to formulate a quote (see our page on the Cost of home appraisals). One of our Certified home appraisers will do some initial research to determine the complexity of the appraisal assignment. At this point, our Chief Appraiser can quote a fair price for the appraisal assignment and give you an estimate of our timing (we are very fast). If the appraisal assignment is for a full home appraisal (we also provide drive by and Certified Desktop Appraisals), an appointment is set for our inspection of the property.

Research and analysis

At this point the appraiser's real work begins. From our extensive real estate knowledge base and evaluation tools, we will research the subject property's improvements, marketing area and neighborhood. Researching the home's living area, lot size, room count etc. gives property's marketing area and neighborhood helps us understand the market conditions at the time of the appraisal (this could be the current real estate market conditions or retrospective market conditions). Understanding the market conditions will tell us if property values are stable, going up or down.

The appraiser must collect, verify, and analyze all information necessary for credible assignment results.

Analyzing sales over the past two years in the subject's marketing area helps to evaluate market reactions to value contributors such as living area, lot size, bedrooms, bathrooms, garage spaces, pool, spas etc. to be used in the direct sales comparison approach to value (adjustments to comparable sales). To do this, the appraiser incorporates a multiple regression analysis. The appraiser takes sales data from the subject's greater market area (i.e. similar attributes outside but including the subject's immediate neighborhood) due to its similar appeal and larger data set. Support for the primary value contributors is from the multiple regression analysis of sold properties in the subject's marketing area. Indicated adjustments (coefficient) or R2 (R squared) is a statistical method that explains how much of the variability of a factor (e.g. living area, lot size) can be caused or explained by its relationship to another factor (sales price).  It is computed as a value between 0 (0 percent) and 1 (100 percent). The higher the value, the better the fit.

Due to the general lack of sufficient sales data in the subject's sub-market (immediate neighborhood), the appraiser may also incorporate paired sales analysis of the comparable sales that make up the subject property's current sub-market (comparable sales) to help arrive at credible adjustments to comparable sales. Applying appropriate market adjustments based on the regression analysis and/or paired sales analysis to the comparable sales will narrow the adjusted values of those sales. This market research gives greater insight into formulating an opinion of value.

Inspection of the real estate or home

Appraisers need to know what they are appraising, so viewing the home is helpful. Appraisers are not home inspectors, but their inspection is only to ascertain the size, quality, general condition and amenities of the property as it relates to expectations of buyers. Detrimental conditions are also noted and incorporated into the appraisal. Most often, the living area of the subject property, is obtained by measuring the home using ANSI Z765 standards. A sketch addendum would be included in the report which shows the floorplan and calculations for the living area. In some cases, building plans are used for both the floorplan and the living area square footage.

Analysis and Appraisal Report

In developing the appraisal report, the appraiser must adhere to the Uniform Standards of Professional Appraisal Practice. In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading (Standard 2). The appraiser will develope and incorporate the appropriate approach or approaches to value and reconcile all analysis into a final opinion of value. The final appraisal report is generally delivered to the client as a PDF document via email.