Appraising the Greater Denver Colorado Real Estate Market Areas since 2001
Independent Real Estate Agent Since 2007
What You Need to Know About Home Appraisals
Not all appraisals are the same. When you need an experienced appraiser who delivers high-quality THIS is what you should know. See the shocking differences between appraisals below.
The above photographs are what typical appraisals show for the properties used for comparison and analysis. What can we see about these properties? What is the condition of these properties? Have these properties been upgraded?
My superior quality appraisals go the distance in both quantity and quality. Instead of only one outside photograph, we can clearly see all the photographs of each comparable property. Every available photo of every property is included in each appraisal I complete.
Why Do Interior Details Matter?
Short answer: because we are probably dealing with the largest financial investment of your life. You deserve complete and accurate information on all the information that is used in appraisal analysis. Twenty or more photos is tremendously better than just one exterior photo. Yet most appraisers use only one photo simply because that’s the way it’s always been done. That’s not nearly good enough for my high-quality standards.
The above illustration shows the intricate detail which the floor plan software is capable of producing.
The above illustration shows the minimal details which most appraisals contain for the floor plan drawing.
The above illustration shows the very precise detail which the floor plans in my appraisals contain.
Why is a Floor Plan Layout Important?
Two of the most important pieces of information about a property is the size (square footage) and the layout. This information has to be verified correctly and forms the basis of which everything is compared and analyzed. The software to create an accurate floor plan is very powerful. Don’t settle for low-quality results.
Data Analysis That Crunches the Numbers the Right Way.
With the correct and accurate base information that is available, the research and analysis of data can be performed to a high degree of accuracy. This is the most critical phase of the appraisal. While most appraisals may limit this phase to one page of summary data, I expand this to include analysis of every major feature of a property and market area and support it with solid data and visual aids, such as charts and graphs, as needed.
Accurate Analysis Produces Quality Results
These are comparable sales grids. In the first example above, the sale prices start out $6,000 apart, but end up being almost triple that amount at the “final valuation analysis.” The range of numbers are supposed to be closer together – not further apart. This is not only poor appraisal practice – it is, in fact, completely wrong. In the second example, the difference in the sale prices is $84,000, which has been reduced to less than one-tenth that amount at the end of the analysis. Reducing the differences and “aligning” the values is what the data analysis is all about.
Quality is Everything or It is Nothing at All
Because we are dealing with the largest investment in someone’s life, details are vitally important. The floor plans above are both from appraisals of the same property. The boxed red areas are areas of the home that were missed completely. Obviously, the one on the left was done by an appraiser that didn’t care enough to complete accurate measurements.
This is unacceptable. I discovered this very poor quality work when I appraised this home years later.
This is shown here as a prime example of the care and skill which a high-quality appraiser would use.
What do you see in this photo? Most people see a nicely decorated modern living room. An appraiser should see a lot more. The main points of this living room are a vaulted ceiling, designer fireplace, hardwood flooring, and upgraded windows.
You paid for every feature of your home, so it is vital that every feature is noted so that a high-quality appraisal includes and truly reflects every part of a home.
Every Property is Unique
As we have seen, there are many ways to take shortcuts in appraisals.
I choose to compete on quality because of the huge dollars at stake. That is a rarity these days where companies usually compete on speed and price – but not all companies compete that way.
My extra focus on quality will exceed your expectations. Expect the best, and don’t settle for less. There is far too much at stake for anything less.
“You have to learn the rules of the game. And then you have to play better than anyone else.”
Contact us for any general questions about appraisals or buying and selling a home.
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