Tools of the Trade

Though one might think an appraiser simply “looks at the property” and makes a value determination based on other local real estate sales, the process is much more involved.  In fact, the appraiser one of the most technically advanced and sophisticated agents in the real estate world.  While experience and professional judgment play a role, the process of real estate appraisal is much more involved.  

When the appraiser arrives at the property, he or she has already reviewed the local marketplace and has an understanding of recent comparable sales.  Upon arrival, reviewing, photographing and measuring the subject property allows the appraiser to have an accurate picture of your home’s unique place in the real estate world.  From there, the appraiser gathers market data, comparable properties and constructs a report which allows you or your lender to understand your homes real value.
So what is the process…

  1. The order: through our website, prospective clients can review our services and place an order for an appraisal.  This will result in our office contacting you and gathering more information about what services you’re looking for, establishing an appropriate fee for service and answering any questions you may have regarding the appraisal process.

  2. Data gathering: information and data are the lifeblood of the appraisal process.  Understanding what one’s home or property is worth, or may be worth if one is considering an investment opportunity, means the appraiser must understand market trends in order to know where values have been and where they’re going.  Through MLS (Multiple Listing Service) searches and data gathering, tax records and maps, potential environmental impacts (floodplains and geological/topographical considerations), as well as market trends and patterns, the appraiser interprets and extrapolates how these various data impact your specific situation.  

    3. In other words, many factors and considerations must be examined to truly understand property value.  While it may be tempting to simply look at what other homes are selling for in your neighborhood and assume your home is similarly valued, internal and external factors which may specifically impact your property, can add to, or decrease value accordingly.  Hiring an appraiser means that your property is considered in the “full light of day” and not merely priced according to the “shadows of your neighbors homes”.

  3. Final report: what good is this process if there are no deliverables at the end? A professional appraiser, using modern technology and tools, provides a report which not only looks at your property but also clearly demonstrates its place in the real estate market.  This report allows you, a bank or other lender, or even a local taxing authority (town, city or county), to understand what your property is reasonably worth.  Having an accurate picture of your property’s real value ensures that your investment is sound and will provide you with a clear understanding of its place in your personal and financial security. 
So what are the tools of the appraisal trade?  

Phones, email, faxes as well as tape measures, photos and sketches are still essential to the appraiser – but the modern appraiser is much more.  Market trends, scatterplot graphs, sophisticated mapping instruments add additional information to make the most accurate and reliable report.  But while cliché, the most significant technology the appraiser employs is his or her experience and understanding of the real estate market.  A local appraiser, living in your community, combines all this great technology with the knowledge and understanding of your actual neighborhood.  While technology is critical for the appraiser, in many ways it still comes down to location, location, location.