Notations about seriously flawed characteristics, such as a crumbling foundation. An estimate of the average sales time for the property. The type of area the home is in (a development. stand-alone acreage, etc.).
RESIDENTIAL APPRAISAL METHODS
There are two common appraisal methods used for residential properties:
1. Sales Comparison Approach: The appraiser estimates a subject property's market value by comparing it to similar properties sold in the area. The properties used are called comparables or "comps." No two properties are exactly alike, so the appraiser must compare the comps to the subject property, making paperwork adjustments to the comps to make their features more in line with the subject property. The result is a figure that shows what each comp would have sold for if it had the same components as the subject. 2. Cost Approach: The cost approach is most useful for new properties where the building costs are known. The appraiser estimates how much it would cost to replace the structure if it were destroyed.
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