Chuck, Other/Just Looking in Roxbury Township, NJ

What is a bank appraisal based on? The last property sold in area?

Asked by Chuck, Roxbury Township, NJ Tue Oct 6, 2009

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Currently bank appraisals are using closed sales within the last 3 - 6 months and within 1 mile of the subject property. Homes should have similar number of bedrooms, baths, style,size, age, and amenities. What an appraiser tries to do is to "adjust" the comps to "become the subject" For example, If two home have basements and one is finished and one is not the one with the finished basement would get more value. You will add and subtract value for item that are considerer "better than" or "less than" the subject and usually if done properly the values of the 3-5 comparable should be within 5% of each other. Appraisers are licensed by the state and must take continuing education courses to keep their knowledge and skills current. Also if there is a short sale or foreclosure the appraiser may or may not use them as they are usually below market value or what we call a "distressed sale" . If you would like more detailed information on the Roxbury real estate market please feel free to contact me.

Denise Gueterman/ Broker Salesperson
Weichert Realtors 142 Main Street Chester, NJ 07930
908-303-2472 Mobile Website: http://www.denisegueterman.net
1 vote Thank Flag Link Tue Oct 6, 2009
These appraisals are very detailed professional who renders opinion is licensed by State.

a) Sq ft
b) Year built
c) Date closed
d) Distance to home buyer wanting purchase
e) Condition of home
f) Status of home sold if foreclosure

Are a few examples how a value of home is considered

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0 votes Thank Flag Link Thu Oct 8, 2009
A bank's appraisal is an analysis of a subject property that is compiled by licensed real estate appraiser. The appraiser's property evaluation is determined through a review of similar homes within the subject's location that are recent transactions.

"The last property sold in an area" may or may not be a valid consideration and will only be factored in if the property is od a "like kind." Appraisers normally use several comparison properties when determining the value of a home.
0 votes Thank Flag Link Tue Oct 6, 2009
Chuck,

An appraisal is based on 3-5 similiar sales of homes that are similiar to your home. The sales should be within 1 mile and within the last 3-6 months. The comps should be similiar in age, condition, style, bedrooms, baths, sq ft, etc. The appriaser will make adjustments when comparing your house to others. so if you house has 2200 sq ft and the comp has 2500, an adjustment will be made. Hope this helps you understand how an appriasal works.
0 votes Thank Flag Link Tue Oct 6, 2009
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