Home Evaluations: What Is Involved in Property Assessment?
No matter what type of home you have—a single family home, an estate home, or a luxury home—you will have to go through a property assessment. It is a requirement in today’s market.
What Is Involved in Property Assessment? What Should You Be Aware of?
There is typically a 4-step process to property assessment.
1. Researching the Home
An appraiser will start off by doing research. They will review public records, tax records, and sales data of the home, as well as homes in the same neighborhood or of a similar price range. This information will provide them with a “preliminary appraisal,” an idea of what a home is worth before they physically evaluate it.
2. Appraising the Home
After preliminary research, an appraiser will go through the home and tally the number of rooms, square footage, and all of the amenities. They will also note any deficiencies—anything that is broken, missing, or damaged. An appraiser will do a visual inspection of a home, while a licensed inspector will physically check areas of damage and determine how they affect the home’s value. Photos will usually be taken.
3. Evaluating All Findings
Once the physical evaluation has been completed, the appraiser will review their preliminary appraisal and compare it to their notes and photos. They will compare the added amenities or the deficiencies of the property with similar properties and make deductions or add more value to the home. For instance, if the home being appraised has brand new wood floors, stone countertops, and custom cabinets, but similar homes don’t, this will add value to the home. If, however, similar homes have all of these features but the home in question does not, the value of the home being sold will be reduced.
4. Writing a Report
Once all of their findings have been compiled, the appraiser will write a report that will be sent to the homeowner, real estate agent, the home buyer, and the lender. The information from this report will determine whether a house is being sold for a fair price in today’s market.
Whether you’re buying or selling a home, you’ll have to be part of a property assessment. We can help you prepare if you’re a seller, and show you what to look for if you’re a buyer. Contact us today for more information on property assessment, or buying and selling a home.