RESIDENTIAL PROPERTY APPRAISALS
Our Residential Property Appraisers Follow Two Common Appraisal Methods:
SALES COMPARISON APPROACH
We’ll estimate a subject property’s market value by comparing it to similar properties that have sold within the same area. The properties used are called comparables, or comps. Since no two properties are exactly alike, our residential property appraisers will analyze the comparables to the subject property and then make the necessary adjustments to determine a range of value.
The cost approach is most useful for new construction, where the costs to build are estimated. Our certified appraiser will estimate how much it would cost to replace the structure if it were destroyed or damaged beyond repair. The appraiser estimates the land value and adds it to the replacement cost, less depreciation. Depreciation is the loss in value considering physical, functional and external factors.
At Nicklas King McConahy, our residential property appraisers bring their expertise to:
- Single-Family Dwellings
- Small-Income Properties
- Vacant Land
- Farms and Farmland
- Recreational Land
- Land Development
Reports from Our Residential Property Appraisers Comply with all Federal and State Requirements, and include:
- A description of the property and its locale;
- An analysis of the “highest and best use” of the property;
- A cost analysis, if appropriate;
- Information regarding current real estate activity and/or market area trends; and
- An analysis of income potential.
What You’ll See on Our Residential Appraisal Report
Nicklas King McConahy provides a very detailed appraisal report that includes:
- Details about the subject property, along with side-by-side comparisons with three similar properties;
- An evaluation of the overall real estate market in the area;
- Statements about issues the appraiser feels are harmful to the property’s value, such as poor access and other factors;
- Notations about seriously flawed characteristics, such as a crumbling foundation;
- An estimate of the average marketing time for the property; and
- A description of the subject neighborhood (a development, stand-alone acreage, etc.).