Understanding Appraisals

Buying a home is an important financial decision. It doesn't matter if a primary residence, a seasonal vacation home or an investment home, purchasing real property is transaction that requires multiple parties to make it all happen.

Buying or selling a home brings together a unique group of professionals. Real estate agents guide you through the intricacies of the market, helping you find the perfect property or secure the best deal. Banks, with their mortgages and loans, fuel the entire process. And quietly working to guarantee a smooth closing, title companies meticulously verify every detail, ensuring the legal transfer of ownership.

To learn more about appraising, click here to see a short video or call us today to talk about your specific property.

Ever wonder how the mortgage lender determines the loan amount? That's where a real estate appraiser comes in. We provide an objective assessment of a property's market value.

I can assist you at any stage of the buying or selling process. Whether you're a seller aiming to set a competitive listing price, an agent needing to confirm a contract price will satisfy loan requirements, or a buyer wanting an independent valuation, I can provide the professional expertise you need. I also work with many local lenders.

The inspection is where an appraisal begins

At Handle With Care Appraisals, my evaluation process begins with a comprehensive on-site visit. I personally inspect every aspect of the property, carefully documenting its characteristics and condition. This includes everything from the number of rooms and overall layout to the quality of construction and any updates. I'll also create a detailed sketch to accurately capture the home's square footage and floor plan. My goal is to provide an objective assessment of the property's current state, noting any significant attributes or areas that may require attention

Back at the office, I consider which of the three approaches to determining the value of real property are best suited for your property, research the market area and properties.

Replacement Cost

The cost approach to appraisal involves estimating the current cost of replacing the property from the ground up. This includes factoring in local building costs, labor rates, and other relevant expenses. While this method often establishes the upper limit of a property's market value, it's typically used less frequently than other appraisal methods.The cost approach to appraisal involves estimating the current cost of replacing the property from the ground up. This includes factoring in local building costs, labor rates, and other relevant expenses. While this method often establishes the upper limit of a property's market value, it's typically used less frequently than other appraisal methods.

Sales Comparison

Analyzing Comparable Sales:

A crucial part of my process involves analyzing recent sales of similar properties in your market. However, not every sale is a reliable indicator of value. I carefully select "comps" that truly reflect the market by considering factors like proximity, size, age, style, condition, and market trends. This might involve finding properties that are slightly larger or smaller, older or newer, to establish a range of values.

Making Adjustments:

Once I've identified suitable comparable sales, I account for any differences between those properties and yours. For instance, if your property has an updated kitchen that a comp lacks, I'll factor in the added value of that upgrade. The adjustment amounts are statistical market based calculations for the market reaction to a feature. For example, installing a pool may have cost $60,000 and the market reaction to this feature is $20,000. This detailed analysis ensures an accurate reflection of your property's unique features.

Valuation Using the Income Approach

In the case of income producing properties - rental houses for example - the appraiser may use a third approach to value. In this situation, the amount of revenue the real estate produces is taken into consideration along with income produced by comparable properties to give an indicator of the current value. We do not perform short term rental analysis but can refer you to a General Appraiser to assist you if this is something you need. Short term rental analysis is used for weekly or monthly rentals and for vacation rentals such as AirBnB.

Arriving at a Value Conclusion

After carefully considering all relevant approaches and data, I'll arrive at a final estimate of your property's market value. This appraisal represents a well-researched, objective assessment of what your property is worth in the current market.

It's important to remember that while an appraisal provides a reliable indication of value, the final sale price can be influenced by various factors. Motivated sellers, eager buyers, or competitive bidding wars can sometimes push the closing price above or below the appraised value.

However, lenders often rely heavily on appraisals to guide their lending decisions. They want assurance that the property's value supports the loan amount, protecting their investment in case of foreclosure.

At Handle With Care Appraisals, my goal is to provide you with the most accurate, objective, and unbiased property valuation possible. This empowers you to make informed decisions, whether you're buying, selling, or refinancing. I'm committed to providing a clear understanding of your property's worth, giving you confidence and peace of mind throughout the process.