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What Does Appraisal Mean in Real Estate?

In the world of real estate, an appraisal is much more than just a guess about your home’s value. It’s a carefully thought-out evaluation that determines how much a property is really worth. At Triangle Appraisal Group (TAG), our certified appraisers are armed with experience and a deep understanding of the market. They look at everything from the size of your home to its location and condition to come up with a value that’s fair and accurate.

It’s key to understand that an appraisal is not the same as a home inspection. While an inspection digs into the condition of the home, an appraisal focuses on valuing the property as a whole. When you ask, “what is the purpose of an appraisal?”, remember it’s all about getting a clear picture of your home’s worth, whether for buying, selling, or refinancing purposes.

The Home Appraisal Process Explained

We approach the valuation process as a detailed journey to determine the right value for your home. Here’s how it unfolds:

Day 1: Appraisal Request is Scheduled

The journey begins when you schedule your appointment with us. We set everything in motion to prepare for a thorough examination of your property.

Day 2: Comps Are Pulled, and Physical Inspection Is Completed

This is where we dive deep into your property’s details. One of our certified appraisers conducts a detailed on-site inspection to confirm square footage, condition of the home, and the presence of any enhancements or unique features that could affect the property’s value. On this day, we also gather comparable property sales data (comps) to start understanding how your home compares to similar properties in the area.

Day 3-4: Our Valuator Team Analyzes Field Data and Compiles the Report

Over the next two days, our valuation team meticulously analyzes all the data collected from the field inspection and comps. This is when we piece together the story of your home’s value. We take into account its location, condition, and the latest market trends. 

Day 5: Report Is Reviewed and Sent to Client

Once the report is compiled, it undergoes a thorough review to ensure every detail is accurate and wellsupported. Then, we send the comprehensive report to you, providing a clear and detailed valuation of your property. 

Our 5 day appraisal process

The 3 Approaches to Value

When it comes to determining the value of your home, we at TAG employ three main approaches, each
providing a different perspective on your property’s worth:

  • Sales Comparison Approach: Looks at recent sales of similar homes in your area to gauge your property’s market value.
  • Cost Approach: Calculates what it would cost to rebuild your home from scratch at current material and labor rates, minus any depreciation.
  • Income Approach: If your property generates rental income, this method considers the value based on the income it could produce.
3 Approaches To Value

Want to deepen your understanding? Click here to explore
the universal appraisal methods utilized nationwide.

Different Types of Home Appraisals

There are three main types you should know about: full, exterior-only, and desktops.

  • Full Appraisals are the most detailed, with an appraiser visiting and inspecting both the inside and outside of your home.
  • Exterior-Only Appraisals focus only on the outside of your property, offering a quicker but less detailed valuation. One of our appraisers will come to your property and take photos of the outside, as well as use public records in tandem with their inspection.
  • Desktop Appraisals are done without visiting your property, using online data to estimate your home’s value. This type of valuation is heavily reliant on public records and verifiable information from the homeowner.

For more insights on different types of home appraisals, check out our blog post titled ” Different Types of Home Appraisals.

Who Needs an Appraisal?

We’ve worked with a wide variety of people, each with their own unique needs when it comes to home valuations. Whether you’re looking to buy, sell, invest, or just understand more about your property, here’s why you might need an appraisal:

  • Homeowners: Many of our clients are homeowners curious about their property’s current value. This is especially useful if you’re thinking about refinancing or selling. For instance, we once helped a homeowner who was surprised to learn their property value had increased significantly over the years, making their decision to refinance an easy one
  • Buyers: Before you finalize your purchase, you’ll want to ensure the property is truly worth what you’re paying. An appraisal gives you that peace of mind. We recall a first-time buyer who was relieved when the valuation confirmed the purchase price, knowing they made a sound investment.
  • Sellers: Setting the right selling price is crucial. Too high, and your home might linger on the market; too low, and you might not get its full value. Pre-listing appraisals help sellers, like a family we worked with previously, set a competitive price that attracts the right buyers quickly.
  • Investors: If you’re investing in property, you’re not just buying a building; you’re investing in its potential. An appraisal can reveal a property’s income generation and growth potential, something many of our investor clients find invaluable for making informed decisions.

Why Would I Need an Appraisal of Real Estate?

Navigating the world of real estate can be complex, but understanding the value of a property through an appraisal can simplify many decisions. We’ve seen firsthand how an accurate appraisal can serve as a powerful tool in various scenarios:

  • Refinancing: Homeowners often need to know the current market value of their home for refinancing. A recent client was thrilled to secure a better loan rate after our appraisal showed their home’s value had increased.
  • PMI Removal: We’ve helped many homeowners prove their equity has reached the 20% mark, allowing them to drop their Private Mortgage Insurance and save on monthly payments.
  • Estate Planning: An estate appraisal is crucial for fair inheritance distribution. We’ve provided peace of mind to families by determining the fair market value of property assets during estate planning.
  • Separation of Assets: During divorce proceedings, ensuring a fair distribution of property is essential. Our divorce appraisals have facilitated amicable agreements between parties by providing an unbiased property value.
  • Tax Appeal: No one likes to overpay on taxes. Clients have used our appraisal services to challenge and successfully lower their property tax assessments based on accurate market values.
  • Investment Portfolio: For real estate investors, understanding the current and potential value of their rental properties is key. We even offer a free rental analysis with our appraisals, helping one investor client to reassess and optimize their rental strategy.
  • Pre-listing: Setting a realistic selling price is crucial before listing your home. We’ve assisted sellers in hitting the market with a price that attracts buyers right away, thanks to our comprehensive pre-listing appraisals.
  • For Renovations: Understanding your home’s value before and after updates is crucial. We’ve assisted homeowners in identifying renovations that boost their home’s value, making investment decisions clearer and more confident.

Appraisal Costs and Who Pays

Understanding the costs associated with getting a home appraised and who foots the bill is an essential part of the appraisal process. Our TAG team aims to make this as clear as possible:

The average cost for a residential appraisal from us starts at $450, but keep in mind that the final price can vary. Several factors influence the cost, such as the type of appraisal you need (like those detailed appraisals versus a quicker desktop appraisal), the type of home you have (a single-family home might cost less to appraise than a multi-family property), and where your home is located. A property in a densely populated city might have different appraisal costs compared to one in a rural area, mainly due to the complexity of market analysis in different regions.

When it comes to who pays for the appraisal, it generally depends on the situation:

  • Buying a Home : Usually, the buyer covers the appraisal fee as part of their closing costs. It’s a step to ensure the mortgage lender that the property’s purchase price is justified.
  • Selling a Home: If you’re selling and want to appraise your home before listing it (a pre-listing appraisal), you would be responsible for the cost. This can help set a realistic selling price.
  • Refinancing: For homeowners looking to refinance, they typically pay for the appraisal. It’s necessary for the lender to confirm the home’s current value supports the refinance loan amount.

Start Your Journey with TAG

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Navigating the appraisal process can seem daunting, but it doesn’t have to be—not with TAG by your side. As your valuation experts, we’re here to illuminate every step of the way. We can ensure you feel confident and informedwhether you’re buying, selling, refinancing, or just exploring your options. With our deep expertise and commitment to clarity, we aim to make understanding your property’s value straightforward and stress-free.

Don’t leave your property’s value to guesswork. Let TAG provide you with the insights you need to make smart, informed decisions. Contact us today to begin your valuation journey with a team that cares about bringing you not just numbers, but real, actionable knowledge.

Peter Bimonte

Extremely flexible…On time, thorough and knowledgeable…I would recommend them for your next home appraisal without hesitation…5 Stars!

Peter Bimonte

Duwayne Evans

I can’t explain how thankful I am to have a such a wonderful appraisal company at my fingertips. They’re very professional and have fast response times.

Duwayne Evans

Maurice Ellis

I’m very pleased with the way Triangle Appraisal Group conducted business me Kevin was very professional explaining the process and walking me through everything
GREAT JOB. THANKS

Maurice Ellis

D

In working Vicki and Amber, we were extremely pleased with not only how quickly our home + property appraisal was scheduled, but with how professionally the entire process was completed. And, it only took 2 business days for the appraisal to be created and sent to us.
I would highly recommend Triangle Appraisal Group to anyone seeking an experienced team for this service!

D

Stephanie Howard

From the minute, I called Triangle Appraisers to the day I received the appraisal report, I was extremely impressed! Vickie responded immediately to every question or request. This was the easiest most efficient transaction I have had with a business in years! I highly recommend this firm for any of your real estate needs!

Stephanie Howard

Alexandra Saywell-Wade

Triangle Apprasial Group was amazing to work with . They’re so knowledgeable of the housing Apprasial process, housing market. They are quick to reach out to you and have great customer service , punctual and give you a very Detailed report. I recommend them to anyone who needs an appraisal.

Alexandra Saywell-Wade

William Reid

This company was very prompt in answering my online request. Their evaluator was very respectful of our property. Very professional from start to end.

William Reid

Alyssa Baker

TAG has been so helpful and friendly ever step of the way. The appraiser was prompt and courteous. I would absolutely recommend!

Alyssa Baker

Deborah Jordan

They are professional putting the needs of customer first. Taking the time to listen, help you work through struggles. They also work in a timely manner. This is the best deal for meeting your needs. I am a valued customer.

Deborah Jordan

May Love

Outstanding appraisal experience. Expertise and timeliness exceeded expectations. Incredibly accommodating appraiser! Went the extra mile for my rent analysis as well. Impressive service. Thank you Matthew, Vicki and TAG!

May Love

FAQs

When a property is appraised, it means a professional appraiser has evaluated the property to determine its market value. This process involves inspecting the property, considering comparable sales, and assessing market trends to establish a fair value for the property at that time.

The main purpose of an appraisal is to provide an objective, unbiased estimate of a property’s value. This is crucial in various transactions, such as securing a mortgage, setting a sale price, or in legal situations like divorce settlements or estate distributions.

An appraiser determines the value of a property by conducting a thorough inspection, analyzing local market data, reviewing comparable property sales, and considering factors like location, condition, and any improvements or features of the property.

Several factors can affect the outcome of a property appraisal, including current market conditions, the property’s location, its size and condition, recent upgrades or renovations, and the sale prices of similar properties nearby. External economic factors and changes in the local environment can also impact the appraisal value.