There are many steps involved in the appraisal process.  Every step is important and impacts the outcome or conclusions made therein. 

1. Verify the scope of work or the purpose of the appraisal request.
2. Make payment and delivery arrangements.
3. Set up Inspection date and time. Collection of Subject & Market Data.
4. Inspection of property.
5. Continue collecting, reviewing, and processing data and approaches to value.
6. Processing & Review of the Appraisal Report
7. Delivery.

When an appraisal request is received, the first step is to define the scope of work and purpose of the assignment;

• First, establish the type of property, and parcels to be included in the appraisal. This process includes obtaining all data associated with the parcels and contact information so that an inspection can be made.

• What is the purpose of this report, what type of value(s) are requested or required by client.

• Verify the appraisal 'guidelines' and additional forms required by client.

Payment and delivery arrangements guidelines:  If a client is 'established', payment may be made after receiving the appraisal report.   However, new clients and individuals are required to pay at time of inspection or prior to completion of the appraisal report.   A postal address or e-mail is required in delivering a hardcopy or electronic appraisal report.

Now that the agreement between client and appraiser is complete, several attempts are made to set up an inspection time and date for the subject property.   To complete an accurate and thorough appraisal report, an interior and exterior inspection of the property is extremely vital.   Exterior-only inspections make it very difficult to know the current condition of property.  It is true you can not judge a book by its cover.

While on this inspection, the appraiser will walk through every room of  the structure(s) taking notes of the improvements such as new floor covering, replacement or repainted walls, light fixtures, updated plumbing and/or electric, the overall condition, the quality of improvements, the utilities, the room count and layout, the type of foundation, etc.

Continuing on the outside of structure, the appraiser will note the neighborhood, the street layout, the topography and landscaping, the size and type of garage(s) and/or miscellaneous buildings, any external features that may impact the demand or marketability.  These are just some of the items that are noted during this process.

Interior and exterior photographs are taken during the inspection.  The pictures are considered a ‘second pair of eyes’.  Depending on the assignment, interior photographs may be required.  Any and all information obtained during this appraisal report will remain private between client and this office.   Appraisal data must remain on record in this office five years after completing an appraisal report.  

Measurements of the structure may be taken using a Leica Disto Laser measuring device. Appraisals guidelines require that the appraiser take measurements, regardless of the accuracy of the property record card. 

Finally, the appraiser, yours truly, will present you with three documents.  The first document is an ‘Inspection & Privacy Verification Form.’  This form, found HERE, will state legal information on the subject property including the address, owner, client, legal description.  A signature is requested at time of inspection verifying that this appraiser was given an opportunity to complete an onsite inspection and the privacy statement was briefly explained. The final two pages are the ‘Privacy Statement’ and ‘Appraisal Facts.’  You may review them at your convenience.

This is a great opportunity for you to convey any additional information on the subject property, or comparable sales in the area over the past six to twelve months.  Any legal or public documents are welcome.  However, this appraiser will and must remain a ‘Disinterested’ and ‘Unbiased’ Third Party.’

Even before the inspection begins, the appraiser has already taken time to pull up legal information on the subject property including the property record card provided by the county court house records, MLS data when available, purchase agreements, past appraisal reports, and a map of the immediate and surrounding area.   With this data in possession, the appraiser is able to start researching comparable sales and listings in the immediate and surrounding area.  A well supported appraisal report requires ample and accurate data.

The appraiser is now able to concentrate on a handwritten draft of the appraisal report. 

The appropriate combination of the three (3) 'Approaches to Value' are calculated with special emphasis on the 'Market Approach', which provides the most accurate and most reliable support in establishing 'Market Value' for the subject property. This approach uses actual sales and listings from the immediate and surrounding area.  Adjustments are made to each comparable, limited to a gross adjustment of 25% of the sale price. 

The Cost Approach focuses on new constructions; however, this approach is used as a guide to value on all single family residences.   The Income Approach is typically applied to rental properties.

The appraisal report is ready to be processed.  The appraisal report consists of many documents including the appraisal form, required addendum, photographs of the subject property and comparables, maps, and legal documents.  

The report will now be reviewed by an associate, corrections and updates will be made, and the final appraisal report will delivered by US Mail or by e-mail depending on the agreement made at the beginning of this process.

This is often not the end of the process. The client and/or individual may have comments, questions, changes, or additional requests to the appraisal report.  Every attempt is made to satisfy the clients requests; however, this appraiser must follow State, Federal and National guidelines.

The turn around time for an appraisal report typically requires 24-48 hours after completing the inspection.  It is often difficult to set up an inspection date that is suitable for both the occupant/representative and the appraiser, thus impacting the overall time frame.  Business hours apply herein...

• Obtaining information for the appraisal request, and contacting the occupant/representative will take any where from 5 minutes to several days.

• The onsite inspection process will take between 10 to 35 minutes.

• Collecting, organizing, reviewing the data will take 30 to 60 minutes. This includes verifying the accuracy of the data.

• Completing the handwritten appraisal report will vary depending on the appraisal request, the number of required forms and addenda, comparables and listings used in the analysis, and the availability of comparable market.  Typically, this will take 2 to 6 hours.

• The electronic processing will take 2 to 5 hours.  Again, this varies on the amount of work required as shown above; Forms and addenda, interior and exterior photographs, importing legal and other documentation, and creating and securing the Adobe Acrobat PDF file are the key components.

• After a review of the appraisal report, the appraisal will be electronically delivered.  This process should take no longer than 15 minutes.