·         Determine the true standing of the property as it stands.

·         Physically identify the various features to ensure it meets reasonable expectations. (# of bedrooms and bathrooms, physical location of the home)    

·         Provide a sketch of the property with a true reflection of proper square footage and layout of the property.

·         Distinguish obvious defects or features that would have a large impact on the value of the house.

·         Specific data is gathered during the inspection.  (i.e. Location, condition, amenities, size, etc.)

·         General data is gathered from various sources.

o    Local Multiple Listing Services – provide data on recently sold homes that might be use d as comparables.

o    Tax records and other public documents verify actual sales prices in a market.

o    Flood zone data is gathered from FEMA data outlets, i.e. InterFlood

o    The appraiser’s past experience in creating appraisals for other properties in the same market.

• Cost Approach – Determination of the cost to replace the home, less physical deterioration and other factors, plus the value of the land. 

• Sales Comparison Approach  – Making a comparison to other similar, nearby properties which have recently sold.  This is normally the most accurate and best indicator of value for a residential property.  

• Income Approach – Used primarily when appraising income producing properties - it involves estimating what an investor would pay based on the income produced by the property.

The report will identify:

• The client and other intended users.
• The intended use of the report.
• The purpose of the assignment.
• The type and definition of the value reported.
• The effective date of the appraiser's opinions and conclusions.
• Relevant property characteristics:
  • Location attributes.
  • Physical attributes.
  • Legal attributes.
  • Economic attributes.
  • The real property interest valued.
  • Non real estate items included in the appraisal such as: personal property, including trade fixtures and intangible items.
  • All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
  • Division of interest, such as: fractional interest, physical segment and partial holding.
  • The scope of work used to complete the assignment.