What is an appraisal?

Appraisal is the act or process of estimating value. An appraisal will provide an answer to a client's specific question about the value of a real property interest. There are three preferred methods to approach the problem. The most widely used and trusted method is the sales comparison approach. Using this method the appraiser will extensively research the subject's market and find similar properties that have recently sold or are offered for sale. After finding the most comparable properties specific adjustments will be made to reflect differences between the subject and comparables. The end result is an opinion of value that the property would most likely bring on the open market. The second method is the cost approach. This approach is based on reasoning that a buyer would not typically pay more for a property than it would cost to obtain similar land and construct a similar structure in same market area. This approach can be flawed in the way that it cannot take into account certain intangible aspects of value such as immediate location and perceived prestige of owning a specific type of property already constructed. The final approach is the income approach which values a property based on its ability to generate income. This approach is only legitimate where an active rental market exists.

I am being taxed on a certain amount from the county...shouldn't my house be worth at least that much?

Not necessarily. The notice you receive from your county's appraisal district is called ad valorem (according to value) taxation and does not have a direct impact on your actual market value. Your assessed value is determined usually by general trends in your market area and is not individually specific except for special improvements. Your actual market value can vary greatly from your assessed value, especially in older areas where upkeep and updates play a larger role. Additionally, the information that the government is taxing you on can be frequently incorrect (i.e. your home is actually larger than what tax rolls indicate). See our links section to find out more about your county's tax process.

What will the appraiser do while at my house?

Having an appraiser come to your home is a painless process. While at your house the appraiser will measure existing improvements, take photos, inspect the lot and make specific observations about the quality and condition of your materials, noting any special amenities and/or problems that could affect value.

How do I prepare for the appraisal?

Very little is required. Just make sure the appraiser will have access to all aspects of your property, including all rooms inside (including the garage) and access to the inside of any outbuildings. Excessive cleaning is not necessary.

What is the difference between an appraisal and a home inspection?

Much confusion is generated about this. An appraisal is NOT a home inspection. A home inspector will visually inspect the structure and mechanical systems of your home noting any potential problems that are present or that may occur in the future. They do not give opinions as to the value of a property.

What happens after the appraiser leaves?

After inspecting your property the appraiser will then more thoroughly investigate the immediate market and comparable properties in preparation of writing the report. The report will include very specific information that leads to a conclusion of the value of your property.