The Appraiser

     Having an idea of what is involved in appraising a piece of property can greatly help in maximizing the appraised value and avoiding costly detail and re-inspections.  The appraisal process consists of several steps.  The following are the major steps in the sequence normally followed by appraisers:

     •  Research the subject propety as to size, bedrooms, baths, year built, lot size and square footage.

     •  Gather data of recent sales in the subject's neighborhood.  The appraiser needs to locate at least 3 (and preferably more) similarly sized homes that have sold and closed escrow in the neighborhood.  The homes need to be within one mile of the subject and sold within the past 6 months.  These homes are considered the "Comparable Properties" or "Comps" for short. 

     •  Field inspection consists of two parts:  First the inspection of the subject property, and second, the exterior inspection of the comparable properties which have been selected to estimate the value of the subject property. 

     The subject inspection consists of taking potos of the street scene, front of the home and rear of the home that may include potos of the yard.  The appraiser will make an interior inspection for condition, noting any items that would detract from or add to the value of the home.  He will aso draw a foor plan of the home while doing the inspection.

     The inspection of the comparable properties is limited to an exterior inspection. For features which cannot be seen from the street, the appraiser has reports from Multiple Listing Services (MLS), Arizona Marker Data Cooperative (AMDC), county public records, and appraisal files along with other sources to help determine the condition an amenities of the comparable.  After the field inspection has bee completed, the appraiser must determine which comparale properties most resemble the subject, making slight adjustments in value for any differences between them.  After making the required adjustments, the appraiser must go through the reconcilitation process with the three comarable properties to determine a final estimate value.  This method of estimating value is called the"Direct Sales Comparison Approach to Value", and it accounts for nearly all of the considerations in determing value of single family homes.

     It is important to consider that the appraiser will be taking photos of the street scene and of the front of the subject.  The street scene gives the lenders some kind of idea as to the type of neighborhood in which the home is located.  The photo of the front of the home gives the lender an idea of its condition and is curb appeal.  Many homeowners don't take care of the rear portion of their home and backyard, so for this reason the rear hoto is required.

     In most cases (over 90% of the time), what you see in the condition of the exterior of a home will be repeated almost exactly in the interior.  So, one of the most important things you can do to enhance the value or perceived value is to improve the curb appeal of your home.

    An appraiser will call in advance to set up the appointment to inspect your home.  At that time, offer to supply any information about the home's size, number of bedrooms, bathrooms, pool, enclosed patio, etc.  The more that is known about the property prior to inspection, the better the appraiser can focus on researching the most similar comparables.  "Doing your homework" will maximize your chances of having a good appraisal.

     While your home is being inspected, don't follw the appraiser from room to room causing distractions.  Instead, allow the inspection to go smoothly.  In case the appraiser has any questions, be close by to answer them.  The time to mention the things you think are important is either before or just after the inspection.