This step involves gathering data about the subject property.  This data includes, but is not limited to, tax information, current and previous deed information, gathering surveys and/or site maps, and figuring out the zoning pertaining to the property. 

 

 

The appraiser must physically inspect the property being appraised to establish the true status of the property.  During the inspection the appraiser may take pictures, measure improvements, make sketches, and take notes to assist in the accurate reporting of the subject property.  The appraiser also looks for any major features or defects that could possibly affect the value of the property. 

 

 

Appraisal reports can vary in length depending on the form requested and degree of difficulty.  Certain appraisals may require extra addendums and further explaination to assist the readers in understanding the conclusions reached by the appraiser. 

 

In the Northwoods Market, the sales comparison approach and cost approach are the most commonly used  approaches to value.  The sales comparison approach uses at least three recent sales of similar properties in the vicinity of the subject property.  The sales prices of these "comparable" properties are then adjusted positively or negatively, depending on the features that the subject property may or may not contain, until an adjusted value is derived. 

 

The cost approach to value estimates how much it would cost to construct a property similar to the one being appraised.  The cost approach uses a residential cost handbook, along with local building costs, labor costs and other factors as guidelines.  The cost approach typically sets the upper limit of value for a property.

 

Finally, the information from the developed approaches is reconciled and an estimated market value for the subject property is obtained.  This amount is most likely the best indication of what a property is worth, however it may not be the exact number.  There are always factors that the appraiser can not foresee that may affect the final sales price of a property such as seller motivation or bidding wars. 

 

 

After the appraisal is completed, the report needs to be delivered to the client.  Adamovich Appraisals gives the client the option to receive the report via email as a PDF file, or the more conventional "snail mail".  Once the report is received as an email, the client can then proceed to print a hard copy for themself or for their clients.