A GUESS WILL NOT SUFFICE
A persons home is often their largest asset, however, many people have no idea what their home is actually worth. Due to the recent upheaval in the housing market and the uncertain economy, many homeowners have inaccurate perceptions.of the value of their property. The value of a home is not as simple as “Well, the house across the street sold for $xxx,xxx, so mine must worth at least that as well.” People often have an emotional attachment to their home, which skews their perception and often results in them overestimating the value. As the real estate markets have started to stabilize, we have realized that homeowners generally do not have any idea what their home is worth. Given the volatility in the real estate market over the last 10 years this is completely understandable. Despite this uncertainty, we still need to move forward with life. College tuition still needs to be paid, home improvements and maintenance need to be performed, or people are simply retiring and want to simplify their housing situation. All of these are major life events and need to be properly planned for to ensure the best possible outcome. Because your home is your biggest asset, it should be treated as such. Guessing on a value or estimating based on what a house in your neighborhood sold for a year ago simply will not do. We want to make sure that you are making sound financial decisions. Whether planning for college tuition or planning to retire, the single best way to lay the foundation of a solid financial plan is to understand what your home is worth. Unlike other assets, you can not just look at a bank statement or look in the Wall Street Journal to determine how much the asset is worth. A lot goes into what your home is worth, among these – Location, Condition, Improvements and Amenities. No two homes are the same, and these factors need to be carefully considered in order to determine a credible opinion of value.
Our panel of appraisers can help remove the emotional aspect from the home valuation process. When combining their expertise with the multitude of tools and resources available to them, you can be assured that you will obtain an opinion of value that is credible, unbiased and objective.
If you are interested in having an appraisal done, we have 2 options to consider –
Full Interior/Exterior Appraisal
Pro’s
- Most Comprehensive – With a full appraisal, our appraiser will inspect the interior and exterior of your home to identify any improvements you have made that could impact the value of your home. If your home is in better condition, or has features not found in similar properties in your area, then the value may be greater. Without a visual inspection of the interior, it is not possible for out appraiser to account for these improvements.
- Excellent for Estimation Purposes – If you are estimating the value to make future plans for things like borrowing or renovations, but do not need a precise value. With a drive by appraisal, the appraiser will assume that the interior of your home is in average condition and will not consider any improvements to the interior that may increase the value.
Con’s
- Requires interior inspection – While an interior inspection only takes 15-20 minutes, it does require scheduling coordination to complete the inspection when someone is home.
- Slightly More Expensive – Given that our appraiser needs to visit your home and perform an interior inspection, there is some added cost to doing so. In addition, because the appraiser will be factoring improvements to your property, there is additional work in preparing the final appraisal report. However, in the end, you will receive a report that provides a very accurate representation of the fair market value of your property. (Make this con sound positive. Like it will cost a bit more but could contribute to significant gain when selling house/refinancing.
What You’ll Receive –
You will receive a completed General Purpose Interior/Exterior Appraisal Report. The report will contain exterior all census, tax and deed information relative to your home. The report will contain a sales comparison which compares your home, assuming average interior condition, to 3 comparable homes in your area that have generally sold within the last 6 months. (In markets of less inventory, it may be required to lengthen the time frame to 12 months to find appropriate sales.) This comparison is used to determine a final opinion of value for your home. The report will also include exterior photographs of your home, as well as the homes used in the sales comparison. The final report will provide details of the adjustments made in order to arrive at the opinion of value the appraiser derives.
Exterior Only (Drive-By) Appraisal
Pro’s
- No Inspection Required – Our appraiser will visit your house to obtain exterior photos and survey the neighborhood, but will not inspect the interior of your home. You do not have to be home at the time of the visit.
- Excellent for Estimation Purposes – If you are estimating the value to make future plans for things like borrowing or renovations, but do not need a precise value. With a drive by appraisal, the appraiser will assume that the interior of your home is in average condition and will not consider any improvements to the interior that may increase the value.
Con’s
- Less Precise than a Full Appraisal – Because our appraiser will not be able to inspect the interior of your home, it will be assumed that the condition and improvements of your home are at a level that would be considered average for your area. Therefore, any improvements that you have made (upgraded kitchens or baths, finished basements, etc.) will not be accounted for in the final report. These upgrades could have a significant impact on the final opinion of value. If you have made recent upgrades, then we suggest you have a full appraisal done. While slightly more expensive, it will provide you with more accurate results.
What You’ll Receive –
You will receive a completed General Purpose Exterior Appraisal Report. The report will contain all census, tax and deed information relative to your home. We will provide you with a general description of your neighborhood and it’s beneficial and negative attributes. The report will contain a sales comparison which compares your home to 3 comparable homes in your area that have generally sold within the last 6 months. (In markets of less inventory, it may be required to lengthen the time frame to 12 months to find appropriate sales.) This comparison is used to determine a final opinion of value for your home. The report will also include interior and exterior photographs of your home, a sketch of your home with accurate measurements based on public records, as well as photos of the homes used in the sales comparison. The final report will provide details of the adjustments and an explanation of how the appraiser arrived at the final opinion of value.
PLANNING FOR AN APPRAISAL?
If you are in the process of purchasing a new home, or refinancing an existing home, the property will need an appraisal. The appraisal is one of the many tools your lender uses to determine how much to loan to you. In addition, it is a significant aspect to getting your loan approved. The appraisal typically begins with an inspection of the property where the appraiser will inspect the interior and exterior of the home. If you have not been contacted by our office to schedule the inspection, you will be shortly. The appraiser will visit your home, ask you questions about the home, improvements, required repairs, and any other information that is beneficial to obtain from the homeowner directly. You can expect the inspection to take about 15-20 minutes. Once the inspection is complete, the appraiser will also observe the surrounding neighborhood to get an understanding of what amenities and services are readily accessible to your property. Upon completion of this field work, the appraiser will research and verify a multitude of data, including comparable properties that have sold in the area. All of this information is required in order for the appraiser to arrive at a reasonable opinion of value for the property. Once an opinion of value has been determined, the final report will be delivered directly to your lender for review. If you would like to view the final appraisal, a copy can be obtained directly from the lender.
