Big Bear Appraisal Blog

When an appraiser inspects your property for an appraisal he will look at the overall site, walk around the house, measure the exterior dimensions and take exterior pictures.  Then an interior inspection will be next with pictures in every room and notes regarding the physical characteristics, special features, upgrades and condition of the property.  The appraiser will be evaluating the quality of construction and condition of the improvements to see if it is at the upper, mid or low part of the range of houses found in your neighborhood.  Sales comparables are then chosen based on this evaluation.  It is extremely important for homeowners to be prepared as this is the one shot you have tke the best impression and achieve the highest value.  

1.  Cleanliness - Spruce the house up.  Sweep exterior walks, porches, and decks, vacuum the floors, tidy up the kitchen and bath areas.  Dirty carpeting, marks on the walls, and overgrown landscape affect value and are part of the overall condition rating.

2.  Repairs - Fix the things on your "Honey Do" list that have been piling up.  Touch up peeling paint, repair sagging fence and deck gates, replace missing handrails, leaky faucets, broken windows and drywall.

3.  Upgrades - Have a list of upgrades performed (especially kitchen and bathrooms) over the past 15 years and the approximate date completed. A list of the special features of the property that might not be obvious to the appraiser is also recommended. Have a copy of an old appraisal or better yet, the construction plans, if available.  The appraiser can double check his measurements and avoid a re-inspection to clear up inconsistencies.

4.  Sales Comparables - Don't worry about gathering a bunch of recent sales that come from the local MLS, this is the appraiser's job.  Information on "for sale by owner" transactions in your neighborhood could be helpful as the local MLS does not report these sales.  Also distressed sales and unusually high or low sales may have extenuating circumstances such as sales concessions to the buyer, or extremely good or poor quality and condition.  These circumstances may not be known to the appraiser and this information could explain this unusual sales data. 

 Let the appraiser do his job.  Give him a chance to make his tour and, once completed, this is the time to ask him questions and tell him about anything you think may have a positive impact on your property value.

Real estate appraisal reports are written for many purposes, and in most cases you may decide which appraiser to hire.

Buying and Refinancing a House

The most common reason for an appraisal is when you borrow money.  The lender making the loan in purchase and refinance transactions will want assurance that the property has adequate value to secure their loan.  Current lending law regulates the selection criteria for these appraisers and does not allow the borrower to pick the appraiser.

Trusts and Estates

The creation and management of trusts and estates often require appraisals to document the process and establish and modify the cost basis when a death occurs.  The appraiser is selected by the individual, his attorney or investment counselor.

Divorce and Partnership Dissolution

Appraisals are typically required when there is real estate to be divided or sold due to divorce or the end of a partnership.  Many times one party may wish to buy out another and an appraisal is used to establish the fair market value.  The appraiser is selected by one of the parties or their attorney.

Property Tax Appeal

Property tax appeals are often strengthened with a professional appraisal report.  With values having fluctuated significantly over the past few years, it's a good idea to review your assessed value and request a property tax reduction when warranted.  The appraiser is selected by the property owner.

Charitable Contributions and Gifts to Family

Appraisal reports document the value of charitable contributions where a tax deducution will be taken and gifts of real estate to relatives which may have gift tax implications.  The appraiser is selected by the individual, tax preparer or investment counselor.

Buyers and Sellers

Cash buyers who want a professional assessment of a properties value before closing escrow and sellers who want an unbiased opinion of market value to assist in establishing a listing price also obtain independent appraisal reports.  The appraiser is selected by the individual buyer or seller.

Written by,

Rick Hackney

Big Bear Appraisal Specialist

(909) 866-4225