What are the components of an appraisal?
One's home purchase can be the largest financial decision most people might ever make. It doesn't matter if it's a main residence, a second vacation property or an investment, purchasing real property is a complex financial transaction that requires multiple parties to pull it all off.
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It's likely you are familiar with the parties taking part in the transaction. The real estate agent is the most familiar person in the transaction. Next, the bank provides the financial capital required to fund the deal. The title company makes sure that all aspects of the transaction are completed and that a clear title transfers to the buyer from the seller.
So what party is responsible for making sure the value of the property is in line with the purchase price? This is where the appraiser comes in. We provide an unbiased opinion of what a buyer might expect to pay - or a seller receive - for a property, where both buyer and seller are informed parties. A professional Georgia licensed appraiser from Appraisals By Michael will ensure you as an interested party are informed.
Inspecting the subject property
To determine an accurate status of the property, it's our responsibility to first complete a thorough inspection. We must physically view aspects of the property, such as the number of bedrooms and bathrooms, the location, living areas, etc., to ensure they indeed are there and are in the shape a reasonable buyer would expect them to be. To make sure the stated size of the property is accurate and describe the layout of the home, the inspection often includes creating a sketch of the floor plan. Most importantly, the appraiser looks for any obvious amenities - or defects - that would have an impact on the value of the house.
Following the inspection, we use two or three approaches when determining the value of the property: a paired sales analysis, a replacement cost calculation, and an income approach when rental properties are prevalent.
This is where we pull information on local construction costs, the cost of labor and other factors to calculate how much it would cost to replace the property being appraised. This value commonly sets the upper limit on what a property would sell for. It's also the least used predictor of value.
Appraisers are intimately familiar with the neighborhoods in which they work. We thoroughly understand the value of specific features to the homeowners of that area. Then, the appraiser researches recent transactions in close proximity to the subject and finds properties which are 'comparable' to the real estate in question. Using knowledge of the value of certain items such as upgraded appliances, extra bathrooms, an additional living area, quality of construction, lot size, we adjust the comparable properties so that they more accurately portray the features of subject property.
- Say, for example, the comparable property has a fireplace and the subject does not, the appraiser may subtract the value of a fireplace from the sales price of the comparable.
- But, in the case where the subject has something such as an extra half bath that a comparable doesn't have, the appraiser might add the value of that bath to the comparable property.
Valuation Using the Income Approach
In the case of income producing properties - rental houses for example - we may use an additional way of valuing a house. In this scenario, the amount of revenue the property produces is taken into consideration along with income produced by similar properties to determine the current value.
The Bottom Line
Combining information from all approaches, the appraiser is then ready to state an estimated market value for the property in question. It is important to note that while this amount is probably the most reliable indication of what a property would sell for in an open market, it probably will not be the price at which the property closes. Prices can always be driven up or down by extenuating circumstances like the motivation or urgency of a seller or 'bidding wars'. Regardless, the appraised value is typically used as a guideline for lenders who don't want to loan a buyer more money than the property would likely sell for in an open marketplace. At the end of the day: An appraiser from Appraisals By Michael will guarantee you discover the most accurate property value, so you can make wise real estate decisions.
Are you in need of a home appraiser in Atlanta, GA? Well, if so, you have come to the right place. Appraisals By Michael Is a certified home appraiser who specializes in home appraisals, bankruptcy appraisals, divorce appraisals, estate matters, credit union appraisals, and bail bonds appraisals. On Appraisals By Michael's free appraisal website, homeowners are able to access numerous tools such as the homeowner assistance calculator.
Appraisals By Michael specializes in appraisals to help Georgia home buyers determine price, Georgia home sellers to determine a sales price, and Georgia home tax appeal appraisals. We are also certified to provide appraisals for Georgia divorce settlements, appraisals for Georgia estate planning, appraisals for Georgia insurance claims, appraisals for Georgia title insurance claims, appraisals for Georgia foreclosure (REO), and appraisals for relocation. We also do appraisals for vacant lots, appraisals for Georgia land development, and appraisals for Georgia land. Our home appraisals are clear and concise and we are here to go over any part of the appraisal that our client is unclear about or needs more details on.
As your local appraiser in Atlanta GA, you can call on Appraisals By Michael for appraisals in Cherokee County, appraisals in Cobb County, appraisals in DeKalb County, appraisals in Forsyth County, appraisals in Fulton County, appraisals in Gwinnett County, appraisals in Henry County and appraisals in Rockdale County as your appraisal professionals in Atlanta Georgia.
At Appraisals By Michael you will find that as your local home appraiser we work hard to provide you not only appraisal services in Atlanta and the surrounding areas but information that can help you as a buyer, seller or attorney to be more knowledgeable about home appraising in and around Atlanta. At AppraisalsByMichael.com you can order a home appraisal, view our coverage area, find out tips for faster appraisal turnaround times, view updates to your appraisal order, get home appraisal tips, information on the home appraisal process and find the most up to date information in the appraisal and real estate industry.
As a trusted Georgia home appraiser with over 15 years of local home appraising experience, we will provide you with the service, details and speedy home appraisal reports many of our customers have come to expect. At AppraisalsByMichael.com you can order a home appraisal, view our coverage area, find out tips for faster appraisal turnaround times, view updates to your appraisal order and find the most up to date information in the appraisal and real estate industry.
Thank you for visiting AppraisalsByMichael.com, the more information you have; the more informed you will be regarding your home. Feel free to order online or give us a call for faster and easier ordering.
Contact us today so that we can start on your home appraisal in Atlanta.