How does the appraiser arrive at his/her opinion of market value?
The appraisal is based on information gathered by the appraiser from public records, inter-office data, inspection of the subject property and neighborhood, and selection of comparables within the subject’s market area. The appraiser is required to select a minimum of three recent closed sales similar to the subject in regards to style, location, square footage and physical amenities. The appraiser then makes a dollar adjustment either negatively or positively when appropriate to reflect the market reaction to those items of significant variation. Remember, the dollar cost of an individual amenity of additional feature does not always reflect the contributing value of that item.
