How are home appraisals done?

When a homeowner decides to sell their property, they often consult with a real estate agent when putting their house up. In turn, the real estate agent hires a professional appraiser who will inspect the house thoroughly to get an approximate value of the home. According to Eugene Bernshtam, home appraisals help real estate agents with the financing of a home and in creating a fair deal for the seller as well as possible buyers. Here is how a home appraisal is done.

A home appraisal is more than just an inspection. An appraiser can use several methods when determining the value of a property. The first method is the sales comparison approach. Here, the appraiser determines and compares the value of similar homes in the area. They look at variables such as lot size, square footage of unused space, as well as features like garages, or a fireplace.

Next, the appraiser makes use of a cost approach to the home. The cost approach is often used for new homes as it estimates how much it would take to reproduce the home. It considers every little detail in the home, including fixtures like non-working electric sockets, doorknobs, permanent structural damage, and so on.

Homeowners often receive an appraiser’s report that explains how the appraiser valued the property. Other details included in the report are notes on the condition of the house and other permanent fixtures, statements on major issues, thoughts on the surrounding area, comparison to similar properties upraised, and additional information that realtors should be aware of. Eugene Bernshtam believes that homeowners should make the necessary repairs after the appraisal if they want to increase the value of their home.

Eugene Bernshtam is a real estate developer and head of Avalon Holdings, LLC and its affiliated entities. For more insightful reads on real estate, visit this page.