What is the process for a residential appraisal report?
First, we provide you with an engagement letter via DocuSign detailing the purpose of the appraisal, the property address, the intended use and intended user and also provide a fee and expected delivery date on this form as well.
Next our staff will reach out to you to set the inspection/site visit of your residential property. This site visit takes approximately 30 minutes and allows appraiser time to sketch and photograph your residence and note overall condition, updates and physical features. In some instances, an exterior only inspection is necessary if access to the interior is not possible. In this case, the appraiser will drive by the property and photograph just the front of the home which also allows the appraiser time to observe the condition/location of your property.
With the inspection complete, the appraiser will then research the subject property and select comparable sales available as of the effective date of the appraisal report. In most instances this will be current or as of the date of inspection and the appraiser commonly looks at similar sales in terms of vintage, site area, living area and condition that have closed within the 6 months leading up to the effective date of the assignment.
The appraiser then researches market conditions as of the effective date of the report. Research of average and median sales prices trends are reviewed to conclude if trends are increasing, stable or even decreasing. This data allows appraiser to establish a time adjustment to apply to comparable sales to account for market changes since these respective comparables entered contract (contract date or meeting of the minds of buyer/seller) to the effective date of the appraisal report. This information is typically reported on page one of the GPAR (General Purpose Appraisal Report) or the URAR (Uniform Residential Appraisal Report - utilized for lending and Fannie Mae / Freddie Mac transactions).
After researching market, the appraiser then places comparable sales in the report and researches contributory value impacts of each measurable physical component and applies these adjustments to the comparables to account for differences between the subject property and comparable sales.
The final step in the appraisal reporting process is to reconcile the opinion of value in a summary statement citing which comparable sales or approaches to value (sales, income and cost) were weighted and which were not given consideration. Often the appraiser will state which comparable was given most weight and why while providing additional information contributing to how he/she arrived at their respective opinion of fair market value of the property as of the effective date.
What does a typical appraisal cost?
Fees range from $375 - $2,500 depending on the complexity of the assignment yet commonly are between $400 - $600
How long does it take to receive my appraisal report?
Typically the report can be expected within 7-10 days of order and we constantly strive to deliver reports sooner if at all possible
Rush appraisals (2-3 business days from order to delivery) are available for a $200 additional fee yet capacity varies so contact us to see if rush appraisals are available
Can I order my own appraisal to obtain a new mortgage?
In most cases, the answer is no given Federal guidelines require lenders to maintain their own panel of appraisers and require these lenders to rotate orders to maintain appraiser independence.
There are some exceptions where one can directly engage an appraiser - this is commonly with hard money lenders that do not sell their loans to Fannie Mae or Freddie Mac which are Government Sponsored Entities (GSEs).
How do I read my appraisal report?
Page one of each report details market conditions/physical features of the subject property
Page two cites comparable sales and the opinion of Fair Market Value of the subject - This is were the number you are searching for resides!
Page three typically features cost approach and some general notes
Pages 7-10 (approximately) typically features the General Text Addendum in which these documents reveal narrative addendum stated by appraiser on Market Conditions, Physical Features, Sales Comparison Analysis and Reconciliation Commentary