What is a residential real estate appraisal?

A real estate appraisal is the most important step taken to objectively establish a property's market value, the likely sales price it would bring if offered in an open and competitive real estate market.

Your lender will require almost certainly require an appraisal when you ask to use a home or other real estate as security for a loan, because it wants to make sure that the property will sell for at least the amount of money it is lending.

While a comparative market analysis (CMA) may be used either alone or in conjunction with a real estate appraisal to determine a realistic asking price, remember that the only valuation report a bank will consider when deciding whether or not to lend the money is a real estate appraisal.

What will I see on a residential real estate appraisal report?

• Estimate of the subject property's current market value
• Details about the subject property, along with side-by-side comparisons of three similar properties.
• An evaluation of the overall real estate market in the area.
• Statements about issues the appraiser feels are harmful to the property's value (such as poor access to the property).
• Notations about seriously flawed characteristics, such as a crumbling foundation.
• An estimate of the average sales time for the property.
• What type of area the home is in (a development, stand alone acreage, etc.).

Why do I need a professional appraisal?

Anytime the value of your home or other real property is being used to make a significant financial decision, an appraisal helps.  If you're selling your home, an appraisal helps you set the most appropriate value.  If you're buying, it makes sure you don't overpay.  If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly.  A home is often the single, largest financial asset anybody owns.  Knowing its true value means you can make the right financial decisions.

What qualifies somebody to be a real estate appraiser?

Many states require all real estate appraisers to be state licensed or state certified and have fulfilled rigorous education and experience requirements.  All of our employees are professionally licensed in the state of Illinois.

How long does an appraisal take?

The time needed for physical inspection of the property being appraised can vary over several hours.  This depends on the size and complexity of the property involved.   After the initial inspection, the appraiser spends time assessing the neighborhood and area. The purpose of this tour is to search for comparable sales that have sold within a recent period of time.  When this field work is finished, the appraiser completes the report at our office in Northbrook, IL. The report can consist anywhere from a short form report to a long narrative report exceeding a hundred pages.  Typically, a short form report usually takes between five to seven hours to complete. Our office is open 7 days a week allowing us to provide a turnaround time typically between 24-48 hours with rush service available upon request.

Where does the appraiser get the information needed to complete an appraisal?

The appraiser gets their information from a multitude of sources.  These include the local Multiple Listing Service, local tax assessors records, local real estate professionals, county courthouse records, private public record data vendors, interviews with sellers and buyers, and appraisal data co-operatives.   The appraiser then integrates their own personal knowledge of the subject property along with office files from previous appraisals.