Residential real estate appraisal reports can be quite complex; crammed full with comprehensive market information and different methods for estimating and analyzing value. Sometimes it can be cumbersome to try to sift through all of the information when the average homeowner just wants to get to the bottom line: How much is my home worth?While the appraisal for a refinance or purchase is used by (and written for) the lender, the document is oftentimes read by the buyers, sellers, and real estate agents. Appraisals are generally performed using similar approaches, regardless of the kind of residential property or which party employs the appraiser (such as for agents or homeowners, for pre-listing appraisals). Appraisers operate in locations they recognize. This provides functioning expertise of any local factors that might influence the value of a property.
The report will include specific attributes of the property and of the surrounding neighborhood. The report will note any damage or recent improvements to the home. There will be maps of the subject property location, as well as the comparable properties’ locations. A perimeter house sketch and pictures of the property are typically included. There will also be pictures of houses that have recently sold in the neighborhood. These are the comparables or “comps”. These recent sales are used to help establish value by analyzing recent sales of similar houses.
A typical appraisal, whether written on a Fannie Mae form for lending or a general purpose form for legal, pre-listing, or other uses, will include the following information:
The Subject: The subject area contains a description of the property including physical street address, legal description, county parcel number, and other identifying information.
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