How Is your Home Appraised?
Below is a discussion of the method of appraisal of your home.
In a home appraisal, an appraiser will visit you at your home and conduct an exterior and interior evaluation. After this, they will do a comparison between your property and the recently sold properties around your area.
The common type of appraisal includes URAR or the Uniform Residential Appraisal Report. This includes comparison sales, exterior photos, and breakdown of the cost of property including the number of bathrooms, bedrooms and lot size. This is a combined approach that includes both cost and market approach to decide the value of the property.
In the cost approach, the value is found out by calculating the cost of rebuilding the structure from scratch. In the value approach, the value is found through the comparison of different remodeling projects done in the vicinity that have taken place within a certain time frame.
After the appraiser visits your home, they will snap many pictures and take down notes. The process takes an hour or less, and they would most likely take pictures of properties in the surrounding community as well.