A home or real estate appraisal is the estimated value or assessed value of that home or real estate. The appraiser analyzes the current market conditions to arrive at a value. As the appraiser gathers information pertinent to a report, the appraiser must consider the site and it’s amenities as well as the physical condition of the property. The opinion of value that an appraiser specifies in his report is derived through careful consideration and research of the community. There are different house appraisal methods that a real estate appraiser may use depending on the type of home or real estate property. Below are some of the home appraisal methods that your appraiser may use.
The appraiser estimates the current market value of the home or real estate by estimating the cost of reconstructing the home (to include any improvements) plus the value of the land minus the estimated depreciation of the home since the home was first built.
The market value is determined by adjusted sales price of recently sold similar properties (comparables). The sales prices of the market comparables reflect the behavior of typical buyers in the marketplace.
This is an analysis based on the relationship of value as related to the market rent that a property can be expected to earn.