The Appraisal Inspection
The appraisal typically starts with an inspection of the property to determine the true status of the property including verifying its overall condition, accounting for the total gross living area and total number of bedrooms and baths, determining if there are any adverse external factors affecting the property such as proximity to freeways, busy traffic arteries, etc. The inspection usually includes a sketch of the property to ensure the correct layout and total gross living area of the property. Other items the appraiser looks for are any obvious features or defects that would affect the value of the property being appraised. All this is to ensure that everything falls in line with what a reasonable buyer or lender would expect of the property. After inspection of the property the appraiser uses two or three different approaches in determining the value of the property: a cost approach, a sales comparison approach, and in the case of investment or rental properties, an income approach.
What Does an Appraiser Look for During an Inspection?
An appraiser will take the overall property condition into consideration including both inside and out, and will also make a determination as to the quality of construction. The appraiser also looks at the functionality of the home as well as how typical the style of the home is for the neighborhood. The condition of the property may affect the value especially if there is any deferred maintenance or needed repairs. If the property has just undergone a complete renovation and is in like new condition, it is reasonable to assume that the renovation will affect the value in a positive way. The comparables used should be in the same condition and of the same construction quality as the subject if possible. The appraiser will also verify the components of the house to insure it has what it is supposed to have. If a property is supposed to have a finished room over the garage, the appraiser will verify that it is indeed finished. The appraiser will also measure the home to determine the exact square footage of the home. In some respects part of the appraiser's job during the inspection is to be the eyes for the client/lender. The appraiser is required to ensure that the property is functional, livable, and if any major problems exist they must be disclosed to the client. The valuation of the property will only include real property and permanent fixtures and not any personal property of any type.
Hillman Appraisal in Charleston, Berkeley, and Dorchester Counties in South Carolina
What Does an Appraiser Look for During an Inspection?
An appraiser will take the overall property condition into consideration including both inside and out, and will also make a determination as to the quality of construction. The appraiser also looks at the functionality of the home as well as how typical the style of the home is for the neighborhood. The condition of the property may affect the value especially if there is any deferred maintenance or needed repairs. If the property has just undergone a complete renovation and is in like new condition, it is reasonable to assume that the renovation will affect the value in a positive way. The comparables used should be in the same condition and of the same construction quality as the subject if possible. The appraiser will also verify the components of the house to insure it has what it is supposed to have. If a property is supposed to have a finished room over the garage, the appraiser will verify that it is indeed finished. The appraiser will also measure the home to determine the exact square footage of the home. In some respects part of the appraiser's job during the inspection is to be the eyes for the client/lender. The appraiser is required to ensure that the property is functional, livable, and if any major problems exist they must be disclosed to the client. The valuation of the property will only include real property and permanent fixtures and not any personal property of any type.
Hillman Appraisal in Charleston, Berkeley, and Dorchester Counties in South Carolina