The process, step by step
- Step 1
Consultation
You describe the purpose of the appraisal, the property and the date the value must apply to. Randy confirms what is needed, who will rely on the report and when the visit can happen. Have the address and the purpose ready, plus any deadline from a lender, attorney or court.
- Step 2
Property inspection
He looks at the home's condition, upgrades, layout and site characteristics. These details separate one house from another, so make every area accessible, including any additions, and be ready to say when improvements were made. The visit is for observation. It is not a systems inspection, and an appraisal is not a code-compliance certification.
- Step 3
Market analysis
He reviews recent comparable sales and current trends in the area to see what buyers have paid for similar homes. If the effective date is in the past, the analysis looks at the market as it was then. You do not need to do anything in this step, but you can help by sharing recent facts about the home.
- Step 4
Valuation report
He prepares the written report, which states the value, the date it applies to and the intended use, and shows the comparable sales and reasoning. Reports for different purposes read differently, because each names its own users and limits.
- Step 5
Delivery and review
The report is delivered electronically so you can read it and ask questions. Check the property description for errors, then read the comparable sales. If a fact is wrong, say so in writing.
How the process changes with the purpose
The five steps stay the same, but the details differ. For an estate, the consultation settles the effective date, which may be in the past, and who will rely on the report. For a divorce, it settles the valuation date and who should receive a copy. For a sale or purchase, it settles the current market date and the deadline. Saying the purpose at the first call lets Randy adapt the visit and the report.
Terms you will see in the report
- Effective date
- the date the value applies to.
- Intended use
- what the value is for, such as a sale, an estate or a settlement.
- Intended users
- the people the report is written for. Recipients, who actually get a copy, are agreed in the engagement and can differ.
- Comparable sale
- a recent sale of a similar property used as evidence.
- Adjustment
- a change to a comparable sale's price for a difference from your property.
- Scope of work
- what the appraiser did and did not do to reach the value.
- Limiting conditions
- assumptions the conclusion depends on.
What to prepare
Prepare a dated list of improvements and repairs, access to every area and any documents that describe the property. Timing depends on the property and the purpose, so ask when you schedule. The longer discussion of common problems is in common mistakes during a home appraisal.
Frequently asked questions
Do I need to be present?
Someone should be present to open every area and answer questions about the home.
What does the appraiser measure?
The live process page mentions condition, upgrades, layout and site. Ask what will be measured when you schedule.
When do I get the report?
After the analysis and writing. Ask for the timing when you request the quote.
What if I disagree with a fact in the report?
Write to the appraiser, name the fact and attach any proof. A factual error can be corrected.