An appraisal is an estimate of a property’s market value completed by a licensed or certified appraiser. The value is based upon a market analysis of recent sales of similar properties in the area, along with the property’s physical condition.
The appraisal process generally begins before the appraiser ever sees the property. The appraiser gathers external information from national, state and local governments including flood maps, plat maps, zoning information, property boundaries, local economic data, and more.
The appraiser then does a physical walk-through of the property, taking pictures and making notes that will help them decide the quality and condition of the home. After the inspection the appraiser begins the report.
The appraiser compiles data about recent property sales, external information, and the subject property and begins to find the market value using one or more of the approaches to value. After making adjustments and deciding on the relevant data to be used, the appraiser will reach an opinion of market value.