How to read a property appraiser

Frequently Asked Questions

FAQ

What is the number one rule of adjusting comparables?

As a rule, the fewer the total number of adjustments, the smaller the adjustment amounts, and the less the total adjustment amount, the more reliable the comparable.

What is an example of a comparable in real estate?

Typically, comps also come from the same area and the same, recent time period. For example, if you're trying to sell a two-bedroom, one-bathroom house, your comps would include other two-bed, one-bath houses in your neighborhood that have sold in the past several months.

What do appraisers look for in comps?

Essentially, it all boils down to finding the most similar, most recent, and closest in proximity comparables for your house. These are the comparables that should be the most similar and the best at helping the appraiser determine the value of your home.

Who determines the form format and style of an appraisal report?

The appropriate appraisal report format is determined by the appraiser and the client, considering the appraisal's intended use and specific requirements of the client and regulatory agencies.

What is the difference between a 1004 and a 1004C appraisal?

1004 - (URAR) Uniform Residential Appraisal Report - One Unit (Single Family) appraisal with an interior and exterior inspection. 1004C - Manufactured Home Appraisal Report - One Unit manufactured homes (mobile home) based on an interior and exterior property inspection.

What is the standard appraisal form?

A URAR form, also known as Fannie Mae Form 1004, contains information needed to complete a full appraisal of a property using three primary approaches to determine value: cost approach, sales comparison approach and income approach.

What are the appraisal forms?

What is a Performance Appraisal Form? A performance appraisal form, also called an employee performance appraisal form, is a tool used by people managers and HR teams to measure and benchmark the performance of employees. It helps evaluate the contributions and achievements of employees during a specific timeline.

Who should fill the appraisal form?

Most employers fill out a new appraisal form for each performance review. Highlight the employee's greatest achievements during the review period. Include what projects the employee successfully completed or what they did well.

How to read a property appraiser

What is the land value ratio for Fannie Mae?	– Land Value exceeding 30% of market value The site value is typically required in an appraisal report, with or without the cost approach being included. If this land to market value percentage/ratio exceeds 30% a comment is warranted. This is often the situation on large parcels of land or water front lots.
What are the sections for the Uniform Residential Appraisal Report?	Common sections featured on a URAR form include: Basic information including address, legal description, owner's and/or borrower's names. Information on the contract for sale. Information pertaining to the size, shape, zoning and access to utilities as well as FEMA flood-zone information.
When appraisers look past how a property is being used?	When appraisers look past how a property is being used to determine a more optimal function, what are they determining? Highest and best use looks past the current use (if there is one) to determine if there is another use that provides a higher value.
What are the rules for Fannie Mae appraisals?	Fannie Mae permits an appraisal to be based on the “as-is” condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the safety, soundness, or structural integrity of the property, and the appraiser's opinion of value reflects the existence of these conditions.
Does Fannie Mae have a limit on acreage?	No, Fannie Mae does not have a strict acreage limit. However, it emphasizes that the property's value must be primarily attributed to the residential dwelling rather than the land.
What are the 4 steps of the appraisal process?	Appraisal Process Collect all the relevant information about the item(s) to be appraised. Conduct research to determine values for the item(s). Once values are determined, produce the final appraisal report. Upon payment , release two copies of the appraisal to the client.
What is the appraisal steps in real estate?	The appraiser will visit the property and spend an hour or two inspecting the interior and exterior, measuring the square footage, and evaluating the home's features and fixtures. Additional research will include a comparison of other similar homes that have been sold recently (known as "comps").

• What are the 8 steps in the appraisal process?
  • Q-Chat
    • Define appraisal problem.
    • Determine the scope of work.
    • Collect and verify the data.
    • Analyze the data.
    • Estimate the value of the site.
    • Apply three approaches to value.
    • Reconcile various value indicators to reach final value estimate.
    • Prepare and deliver appraisal report.
• How does an appraisal work in California?

  • How do home appraisers in California determine the value of a house? The short answer is, they compare each property to similar homes that have sold recently in the same area (subtracting or adding value as needed). Based on this evaluation, the appraiser will determine an estimate value for the home.

• How is property value calculated in Texas?

  • Property value is determined by the county appraisal district and is based on factors such as size, location, condition, and any improvements or changes made to the property. Tax rates vary based on the taxing entities associated with each property, including the city, school, and water district.

• What is the 10 percent property tax rule in Texas?

  • Texas Property Tax Code Sec 23.23 limits increases of the total assessed value to 10% from year to year if the property is under homestead exemption. This 10% increase excludes any improvements added by the property owner. This section does not limit market value increases.

• Are Texas property taxes based on market value or appraised value?

  • Per the Texas Property Tax Code, all taxable property must be valued at 100% of market value as of January 1 each year.

• How much can appraisal district increase property value in Texas?

  • A Texas county appraisal distict may not increase the appraised value of a homestead by more than 10% in a given tax year. The homeowner's property tax is based on the county appraisal district's appraised value of the home.

• What is the formula to find the value of a property?
  • Property Value Formula
    1. Property Value, Capitalization Approach = Net Operating Income (NOI) ÷ Cap Rate (%)
    2. Net Operating Income (NOI) = Effective Gross Income (EGI) – Direct Operating Expenses.
    3. Effective Gross Income (EGI) = Potential Gross Income (PGI) – Vacancy and Credit Losses.