How a Real Estate Appraisal Works
An Expert's Guide to Property Valuation
A real estate appraisal is an unbiased professional opinion of a property's value, most commonly used in mortgage transactions. It protects lenders and buyers by ensuring the property's value aligns with its price. This infographic breaks down the key stages of a typical home appraisal.
The Appraisal Process: Step-by-Step
Order Placed
A lender or client officially requests an appraisal. The appraiser receives assignment details and property information.
Appraiser Assigned
A state-licensed and certified appraiser, experienced in the local market, is selected to ensure impartiality.
Property Inspection
The appraiser conducts a thorough physical inspection, measuring the property, noting features, condition, and any improvements.
Market Research
Extensive data is gathered on comparable properties (comps) that have recently sold, are active, or expired in the vicinity.
Valuation & Reconciliation
The appraiser analyzes all collected data, adjusting for differences between the subject property and comps to form a final value opinion.
Report Delivery
A comprehensive appraisal report, adhering to industry standards (USPAP), is compiled and delivered to the client.
Loan Decision
The lender uses the appraisal report to finalize the loan approval, ensuring the loan amount is justified by the property's value.
Key Factors an Appraiser Considers
Appraisers consider a wide array of factors to determine a property's accurate market value, moving beyond just square footage.
- 📍Location & Neighborhood
- 📐Size (SQFT) & Lot Dimensions
- 🛏️Bedrooms & Bathrooms
- 🏗️Age & Condition of Property
- ✨Upgrades & Renovations
- 🏊Amenities (Pool, Garage, View)
- 🏡Architectural Style
- 📈Current Market Trends
- 📊Recent Sales Data
An appraisal provides an essential layer of security and transparency in real estate transactions.
For more detailed information on property appraisals or real estate advice, contact Realtor Rick.
Realtor Rick Goretski | Licensed Nevada & Florida Realtor
NV Cell: 725-900-0404 | NV Direct: 702-200-1023
www.RealtorRickLasVegas.com | www.DisneyWorldAreaHomes.com
NV Lic 0199279 | FL Lic 503412
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