Throughout the our company’s 20+ years of involvement in the appraisal world, we have come to recognize that some people may have never seen an appraisal report before. So as an attempt to answer some preliminary questions, included below is a basic Q&A along with a link to a more in depth form that explains how appraisals are conducted in a more granular fashion.

What is the Appraisal Process?

The Appraisal Process is comprised of 6 steps:

  1. Problem Identification

  2. Identifying Scope of Work

  3. Data Collection

  4. Application of Selected Value Approach

  5. Reconciliation and Final Opinion of Value

  6. Report Defined Value

What are the Approaches to Value?

There are 3 Approaches to value Residential Appraisers use:

  1. Sales Comparison Approach

  2. Income Approach

  3. Cost Approach

How do Appraisers select a “comparable” home?

Comparable homes are primarily chosen based on location, quality, condition and square footage. Due to every home being unique, multiple sales are included within every report to be used collectively in order to derive a value opinion.

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