I have has so many people ask me how much is my home worth? Do you think I can get $500,000 for my home? or When a lender calls me and asked can we get $750,000 for this home? One response I have come up with to avoid talking about value is I say I have to complete the appraisal process first. They say then will you be able to tell me how much? I say yes, first my fee must be upfront in certified funds! Then I will have your report in a couple days. Most people do not understand what the appraisal process is. So here are a few pointers when explaing to someone who might ask. The appraisal process is the method used by appraisers to derive a value estimate.
- The appraiser must define the problem, the first step of the process.
- Then must perform an anaysis.
- Collect any & all data
- Determine Highest & Best Use of the subject.
- Derive an estimate of land value
- Apply all three appraisal approaches
- First Cost approach
- Second Market or Sales approach
- Third Income approace
- Then Reconcilation of all three value estimates
- Last report of the value
This is the whole appraisal process. Good Luck! An appraiser who gives out a verbal estimate of value can be held to it by a court of law.
If your looking for anymore information please send me an email I would be happy to help out as much as I can.
Comments(6)