Along with analysis of a complete listing history of the subject and comparable properties, and complete transaction history of the subject and comparable properties. Also the LPSP% (list to sale price ratio), DOM and ADOM (days on market/accumulated days on market), supply and demand, inventory supply and type, time adjustments, analysis of environmental, economical, and social market factors, reproduction and/or replacement cost, depreciation, and a host of other factors and data required by regulations and/or lender/client requirements.
The appraisal report delivered is a "summary" of the complete appraisal which is actually the work file containing all information acquired for determining the value or value range conclusion.
Which is why it takes a minimum of 18 to 24 months to obtain an appraisal license, whereas, a real estate license can be obtain in 2 to 8 weeks.
I know appraisals "should be" very close to one another. But in today's maket where comparable sales may be hard to find, it leaves more to subjective opinion on the part of the appraiser. I have seen two appraisals on the same house done a couple of months apart come up with values tens of thousans of dollars apart. And timing can be everything when it comes to an appraisal.
Here are some examples of when it may be good to have an appraisal done:
1) The price of the house is very hard to arrive at. There are no or very few comparables or the house is so unique, such as a log cabin that may not have any direct comparables.
2) You want to be sure the house will appraise for the price you are asking. I have seen some desireable homes, say in a historic area, that would never appraise for the price they were contracted for. And if the buyer needs a loan and the appraisal does not come in at your price it may be difficult for the buyer to close if the bank cannot justify the price for the loan.
3) If you the seller cannot seperate yourself and emotions from the transaction itself. If you built the house with your own bare hands and you know that every single nail went in with loving care, you may think the value is much higher than it actually is. An appraisal can give you an unbiased opinion of what it is really worth.
Hope this helps.
hope this helps
A good agent that sells many homes in your area can usually price it out much like an appraiser would, and it would save you a few hundred bucks as well. Just make sure it's someone who knows your area and has done sales there in the past, as some neighborhoods the pricing can vary by street. It will also give you a chance to get to know the agent better in case you decide to sell the home.
Be careful not to sell with the agent that gives you the highest price! They sometimes do that in order to get the listing but then do not perform like they should to sell the home.
Appraisals are different if they are for tax purposes, re-finance, or mortgage. Work with your Realtor to figure out what is best. Personally, if I were selling my house, I would get an appraisal to know how the bank will value it and it sets my own expectations. So many houses that go on the market now are over valued that it would have been useful for those sellers to have an appraisal. Remember, the appraisal is good for only 90 days.
If your house is in a development of similar houses, an appraisal probably is not needed unless you have made major upgrades. Your Realtor can compare your house to what has sold in the past 30, 60 and 90 days.
More important is to work with a good Realtor who can guide you through the process. These days, selling on your on is fraught with problems. Every transaction I have has unforeseen hurdles.
It will be prudent to call a Realtor or a Lawyer who specializes in Real Estate in your area, and can give you the comparables. Also, it would make sense for you to tally up any upgrades you have done to the home.
You can fnd several on this board.