An Overview of the Appraisal ProcessBuying real estate is the most significant investment many people will ever make. It doesn't matter if it's where you raise your family, an additional vacation property or an investment, the purchase of real property is a detailed transaction that requires multiple parties to see it through.
The majority of the participants are quite familiar. The most familiar person in the exchange is the real estate agent. Then, the bank provides the money required to bankroll the deal. The title company ensures that all requirements of the sale are completed and that a clear title transfers to the buyer from the seller.
So who's responsible for making sure the value of the property is consistent with the amount being paid? In comes the appraiser. We provide an unbiased opinion of what a buyer could expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. A professional Indiana licensed appraiser from Gold Medal Appraisals will ensure you as an interested party are informed.
Appraisals begin with the inspectionTo ascertain an accurate status of the property, it's our responsibility to first perform a thorough inspection. We must actually see aspects of the property, such as the number of bedrooms and bathrooms, the location, amenities, etc., to ensure they truly are there and are in the shape a reasonable buyer would expect them to be. The inspection often includes a sketch of the floor plan, ensuring the square footage is proper and conveying the layout of the property. Most importantly, we identify any obvious features - or defects - that would affect the value of the house.
Back at the office, an appraiser employs two or three approaches when determining the value of the property: sales comparison and, in the case of a rental property, an income approach.
Cost ApproachHere, the appraiser gathers information on local construction costs, labor rates and other factors to figure out how much it would cost to replace the property being appraised. This figure commonly sets the upper limit on what a property would sell for. The cost approach is also the least used method.
Analyzing Comparable SalesAppraisers can tell you a lot about the neighborhoods in which they appraise. We thoroughly understand the value of specific features to the people of that area. Then, the appraiser looks up recent transactions in the vicinity and finds properties which are 'comparable' to the home being appraised. By assigning a dollar value to certain items such as upgraded appliances, additional bathrooms, an additional living area, quality of construction, and lot size, we adjust the comparable properties so that they more accurately match the features of subject property.
Valuation Using the Income Approach
A third method of valuing real estate is sometimes employed when an area has a measurable number of renter occupied properties. In this case, the amount of income the property yields is factored in with income produced by similar properties to determine the current value.
Putting It All Together
Servicing: Tucson, Oro Valley, Marana, Catalina, and Oracle.