What is an appraisal?Getting a home can be the most important transaction most of us may ever consider. It doesn't matter if it's a primary residence, a second vacation home or a rental fixer upper, the purchase of real property is an involved transaction that requires multiple people working in concert to make it all happen.
Most of the parties involved are very familiar. The real estate agent is the most familiar entity in the exchange. Next, the bank provides the money needed to finance the deal. The title company ensures that all requirements of the exchange are completed and that the title is clear to pass from the seller to the buyer. So who's responsible for estimating the value of the real estate? This is where you meet the appraiser. We provide an unbiased opinion of what a buyer could expect to pay - or a seller receive - for a property, where both buyer and seller are informed parties. A professional appraiser from Cook Appraisal, Inc. will ensure that you as an interested party are informed. Appraisals begin with the property inspectionOur first responsibility at Cook Appraisal, Inc. is to inspect the property to ascertain its true status. We must physically see features, such as the number of bedrooms and bathrooms, the location, living areas, etc., to ensure they indeed are present and are in the condition a typical person would expect them to be. To make sure the stated square footage has not been misrepresented and convey the layout of the home, the inspection often includes creating a sketch of the floor plan. Most importantly, the appraiser identifies any obvious amenities - or defects - that would have an impact on the value of the house.Analyzing Comparable SalesAppraisers get to know the neighborhoods in which they work. We thoroughly understand the value of certain features to the people of that area. Then, the appraiser looks up recent sales in the neighborhood and finds properties which are 'comparable' to the property being appraised. Using knowledge of the value of certain items such as fireplaces, room layout, appliance upgrades, extra bathrooms or bedrooms, or quality of construction, we add or subtract from each comparable's sales price so that they more accurately portray the features of subject.
Putting It All TogetherAnalyzing the data from all applicable approaches, the appraiser is then ready to state an estimated market value for the subject property. Note: While this amount is probably the strongest indication of what a house would sell for in an open market, it probably will not be the final sales price. Prices can always be driven up or down by extenuating circumstances like the motivation or urgency of a seller or 'bidding wars'. The appraised value is typically used as a guideline for lenders who don't want to loan a buyer more money than they could get back in case they had to sell the property again. At the end of the day: An appraisal from Cook Appraisal, Inc. will help you get the most accurate property value, so you can make the most informed real estate decisions. |