Loan Resources

Appraisal

Our information on real estate appraisals will help you determine the value of your home and assist you in understanding the appraisal process.

The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities, as well as, the physical condition of the property. An appraiser may spend only a short time inspecting the property, however, this is only the beginning of the valuation.

Considerable research and collection of general and specific data must be accomplished before the appraiser can arrive at a final opinion of value. Below is some information to help you get started. To start immediately click here for our on-line application.

Appraisal Basics
Appraisal Methods
Reasons for Appraisal
SettlementOne Appraisal

Appraisal Basics

Real estate appraisal is used to determine the value of the property. The exact reason for the appraisal must be established prior to the start of the appraisal to ensure that the correct value is assessed. The appraiser evaluates market conditions to assist in the value determination. Not only is the property value assessed at this time, but the property's amenities and physical condition are also taken into consideration. The final value of the property is decided when a complete report including research and the accumulation of other relevant data are completed.

Appraisal Methods

The value of a property is determined through the process of appraisal and three different methods are used most commonly to assess a property's value. These three methods are the Cost Approach, Comparison Approach, and the Income Approach.

The Cost Approach evaluates the cost to make improvements to the property at the time of appraisal, minus factors including physical deterioration, economic obsolescence, and functional obsolescence. The final property value is called the Land Value.

Through the Comparison Approach, appraisers use other properties of similar size, location, and quality as bench marks. The property that is being appraised is then compared to these bench mark properties to determine the property's true value.

Finally, the Income Approach is used to determine the property value primarily of commercial real estate. This methodology provides an objective estimate of what a practical investor would pay based on the net income the property produces. The final property value is connected to all three of these methods.

Reasons for Appraisal

Obtaining an appraisal of the property you intend to purchase or sell is a very important step. Appraisals need to be completed for a variety of reasons; to obtain a loan, determine insurance costs, reduce taxes, to assist you in making your purchase decision, and to help determine a reasonable price when selling your property. Government agencies including the IRS require appraisals, and appraisals are also important if you become involved in a lawsuit. Real estate appraisals not only protect your investment in the short term but can play an important role in the future.

SettlementOne Appraisal

Finding an appraiser you trust can sometimes be difficult. With SettlementOne's National Appraisal you know your home will be appraised accurately and thoroughly. With over 6,000 licensed and verified appraisers SettlementOne is ready to help you appraise your new home or the home you are selling.