How does the appraiser determine the value of a property, and what factors are considered when estimating the value?
• The appraisal is an estimate of the fair market value of your property. It includes an analysis of all structures that are permanently attached to the real estate. Neighborhood sales are found and compared to your property. If the comparable sale has a feature that is superior to your property, a negative adjustment is made to its sold price. If the comparable sale has a feature that is inferior to your property, a positive adjustment is made to its sold price. There are strict guidelines and standardized methods to ensure the value you receive is fair. • Physical features of the home: The appraiser views your home as if he were an interested buyer. The age, physical condition, appeal and construction quality are all considered. The home and all structures are measured. • Location: We’ve all heard the phrase “location, location, location.” Neighborhood factors that are considered include the appeal of other homes in the neighborhood and access to goods, services, and employment.
