How Do I Get an Appraisal?

• Property address
• Property type (Vacant land, Single-Family Home, Rental Property, etc.)
• Intended use (Pre-Listing, Estate, Renovation, Replacement Value for Insurance, etc.)
• Once we establish the Scope of Work for the project, the appraiser will provide a quote for the project, delivery date, and schedule the inspection.
• The price of your appraisal will vary depending the property type, report type, location, etc.
• For a typical home of less than 3,000 sf, the inspection will take about 30 minutes.

2. The Inspection

• The appraiser will begin by taking exterior measurements of the first level of the home. While measuring the home, the appraiser will also take exterior pictures of home and site improvements such as swimming pools, guest houses, landscaping, patios, etc. If there is a basement or second level to the home, the appraiser will measure those areas from inside the property. These measurements will be recorded in a digital sketch, which will be included in the report, showing the house dimensions and floor plan.
• After measuring the home, the appraiser will take interior photos of each room, noting the quality and condition of interior finishes and amenities.
• Once the appraiser has completed the sketch and taken pictures, the homeowner will need to provide a list of updates, energy efficient upgrades and/or unique features, etc, so that these investments can be taken into consideration when assessing the property’s value.
• At the completion of the inspection, the property owner will be required to pay the agreed upon appraisal fee.

Request a free residential appraisal quote by emailing us at matt@nickersonappraisals.com.

3. The Report

After the inspection, the appraiser will go back to the office to complete the report. An appraiser typically employs two or three methods to assess the value of the property: the sales comparison approach, the cost approach, and, for rental properties, the income approach.

• Sales Comparison Approach - Typically, appraisers use the sales comparison approach to determine the value of a property. They become familiar with the neighborhoods and markets they serve, gaining insights into the significance of various features for local residents. They analyze factors such as traffic patterns, school districts, amenities, and major roads, and use this knowledge to assess which property attributes affect value. After inspecting the site, the appraiser researches recent sales in the area to identify properties that are comparable to the one being appraised. These comparable properties reflect what similar buyers might consider in that market, and their sales prices provide a foundation for the sales comparison approach.
• Cost Approach - The cost approach is the simplest to grasp. It involves the appraiser calculating how much it would cost to build a property similar to the one in question, based on local building costs, labor rates, and other relevant factors. This method includes the value of the land, any on-site improvements, and an estimate of depreciation if the property isn’t new. In a stable market, the cost value often matches the property’s market value. The rationale is that if you can build a new home for less, why would you pay more for an existing one? If the cost approach is lower than the sales comparison approach, it may indicate that the market values are inflated; if it’s higher, it might suggest a depressed market.
• Income Approach - For income-producing properties, such as rental houses, appraisers might employ a different valuation method. This approach estimates the property's value based on the income it generates, projecting these revenues into the foreseeable future. This method is specifically for investment properties that produce income, and the income generated can sometimes be used to qualify for a loan.
• Reconciliation - After analyzing information from all valuation approaches, the appraiser will determine an estimated market value for the property. While this value is generally the best estimate of what the property is worth, it might not reflect the final sales price. Factors such as seller motivation, urgency, or competitive bidding can influence the final price. Nonetheless, the appraised value serves as a useful guideline for understanding a property’s worth, though it may differ from the offer accepted in a transaction. Ultimately, an appraiser provides a precise valuation to help you make well-informed real estate decisions.