What are the components of an appraisal? Getting real estate is the biggest transaction some people could ever encounter. It doesn't matter if it's where you raise your family, an additional vacation property or one of many rentals, purchasing real property is a detailed transaction that requires multiple parties to see it through. To learn more about appraising, click here to see a short video or call us today to talk about your specific property. The majority of the people participating are very familiar. The real estate agent is the most known face in the transaction. Next, the lender provides the money needed to finance the exchange. The title company ensures that all details of the exchange are completed and that a clear title transfers to the buyer from the seller. So what party makes sure the real estate is consistent with the amount being paid?   This is where you meet the appraiser.   We provide an unbiased opinion of what a buyer could expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. A professional Oregon licensed appraiser from Yearsley & Jones Real Estate Appraisal Services will ensure you as an interested party are informed. Inspecting the subject property Our first duty at Yearsley & Jones Real Estate Appraisal Services is to inspect the property to ascertain its true status. We must physically see features, such as the number of bedrooms and bathrooms, the location, and so on, to ensure they indeed are there and are in the shape a typical person would expect them to be. To make sure the stated square footage is accurate and illustrate the layout of the property, the inspection often requires creating a sketch of the floor plan. Most importantly, the appraiser identifies any obvious amenities - or defects - that would affect the value of the property. Next, after the inspection, an appraiser employs two or three approaches when determining the value of real property: a paired sales analysis, a replacement cost calculation, and an income approach when rental properties are prevalent. Cost Approach Here, we use information on local construction costs, labor rates and other elements to calculate how much it would cost to build a property similar to the one being appraised. This estimate commonly sets the upper limit on what a property would sell for. It's also the least used method. Analyzing Comparable Sales Appraisers become very familiar with the subdivisions in which they appraise. We thoroughly understand the value of particular features to the residents of that area. Then, the appraiser researches recent sales in close proximity to the subject and finds properties which are 'comparable' to the subject at hand. By assigning a dollar value to certain items such as fireplaces, room layout, appliance upgrades, extra 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. For example, if the comparable has an extra half bath that the subject does not, the appraiser may deduct the value of that half bath from the sales price of the comparable home. If the subject has an extra half-bathroom and the comparable does not, the appraiser might add a certain amount to the comparable property. Once all necessary adjustments have been made, the appraiser reconciles the adjusted sales prices of all the comps and then derives an opinion of what the subject could sell for. This approach to value is usually awarded the most weight when an appraisal is for a real estate sale. Valuation Using the Income Approach In the case of income producing properties - rental houses for example - the appraiser may use an additional approach to value. In this situation, the amount of revenue the real estate yields is factored in with other rents in the area for comparable properties to give an indicator of the current value. The Bottom Line Analyzing the data from all approaches, the appraiser is then ready to state an estimated market value for the property in question. The estimate of value on the appraisal report is not necessarily the final sales price even though it is likely the best indication of a property's market value Prices can always be driven up or down by extenuating circumstances like the motivation or urgency of a seller or 'bidding wars'. Regardless, the appraised value is typically used as a guideline for lenders who don't want to loan a buyer more money than the property would likely sell for in an open marketplace. The bottom line is: An appraiser from Yearsley & Jones Real Estate Appraisal Services will help you attain the most accurate property value, so you can make the most informed real estate decisions.

REALTORS and HOME OWNERS

This is a challenging market  unrealistic listing prices can result in extended marketing times and marketing expenses, frustration and the loss of a potential buyer.  We specialize in "PRE-LISTING APPRAISALS".  We will perform all the necessary research to complete an unbiased, market based appraisal with a realistic "fair market value" to get the home sold.  Additionally, a "Pre-listing appraisal" may expediate the lending process.  Call us and let's discuss your needs and how we can help.