![]() ![]() Regardless, the appraised value is typically used as a guideline for lenders who don't want to loan a buyer more money than they could recover in the event they had to sell the property again. It's not uncommon for prices to be driven up or down by extenuating circumstances like the motivation or urgency of a seller or 'bidding wars'. Note: While this amount is probably the most reliable indication of what a house would sell for in an open market, it probably will not be the final sales price. In this case, the amount of revenue the property yields is taken into consideration along with income produced by similar properties to determine the current value.Īnalyzing the data from all approaches, the appraiser is then ready to document an estimated market value for the property at hand. In the case of income producing properties - rental houses for example - the appraiser may use a third way of valuing a house. This approach to value is usually given the most weight when an appraisal is for a home exchange. However, in the case where the subject has something such as an extra half bath that a comparable doesn't have, the appraiser might add the value of that bath to the comparable property.Īt Chase Appraisal Service, we are experts in knowing the value of particular items in Greenville and Outagamie County neighborhoods. ![]() By assigning a dollar value to certain items such asįireplaces, room layout, appliance upgrades, additional bathrooms or bedrooms, or quality of construction, we adjust the comparable properties so that they are more accurately in line with the features of subject property.įor example, if the comparable has a storm shelter and the subject doesn't, the appraiser may subtract the value of a storm shelter from the sales price of the comparable home. Then, the appraiser looks up recent sales in the vicinity and finds properties which are 'comparable' to the property being appraised. We thoroughly understand the value of specific features to the people of that area. The cost approach is also the least used predictor of value.Īppraisers get to know the neighborhoods in which they appraise. This value commonly sets the maximum on what a property would sell for. Here, we gather information on local construction costs, the cost of labor and other factors to ascertain how much it would cost to replace the property being appraised. Most importantly, we look for any obvious features - or defects - that would affect the value of the house.Īfter the inspection, we use two or three approaches when determining the value of the property:Ī sales comparison, a replacement cost calculation, and an income approach when rental properties are prevalent. The inspection often includes a sketch of the house, ensuring the square footage is proper and illustrating the layout of the property. We must actually view features, such as the number of bedrooms and bathrooms, the location, amenities, etc., to ensure they indeed exist and are in the shape a typical person would expect them to be. To ascertain an accurate status of the property, it's our responsibility to first perform a thorough inspection. The inspection is where an appraisal begins A professional Wisconsin licensed appraiser from Chase Appraisal Service will ensure you as an interested party are informed. We provide an unbiased estimate of what a buyer might expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. So what party is responsible for making sure the property is consistent with the purchase price? Then, the bank provides the money needed to fund the exchange.Įnsuring all aspects of the transaction are completed and that the title is clear to transfer to the buyer from the seller is the title company. The most known person in the transaction is the real estate agent. The majority of the participants are very familiar. To learn more about appraising, click here to see a short video or call us today to talk about your specific property. A rental fixer upper, purchasing real property isĪ complex financial transaction that requires multiple parties to pull it all off. ![]()
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