An appraisal is not an inspection. Appraisers might note flaws and problems in the property, but they do not test appliances or check the roof for leaks or examine the chimney. An appraisal simply establishes the property’s market value. A few steps of the appraisal include:
An appraiser determines the condition and quality of the interior and exterior of a property as compared to its location, type of dwelling and other factors. The appraiser makes predictions on the positive and negative influences that will affect the property in the future.
Information is gathered on various factors including the neighbourhood and service utilities to tax assessments and age of the dwelling.
The property is compared to other properties on sale and listed in the area.
The appraiser compares properties by applying greater weight to one or more of the properties used in comparison based on criteria like which one needs the least adjustments or which one is most recent to the market.
The entire report is reviewed and signed. The client is told the outcome and given the report.