Residential Appraisal Services
Home real estate appraisal is the largest type of real estate apprasials MPA, Inc. performs. The three steps in the Appraisal process are collecting, analyzing and reconciling the data.
Collecting data begins with the inspection of your home. Measuring the outside, noting the
condition and construction, and doing an interior inspection. Your appraiser will note the
overall condition and amenities of the house.
The next step is to analyze the information gathered and decide on the best method(s) of
valuation to use. e most commonly and usually the most reliable method of valuation for
residential housing is the Sales Approach to Value. We will search through past sales data
looking for homes that have sold that are similar to your house. (i.e. same style, age, condition
and neighborhood) Typically we prefer to use sales that occurred within the last year as sales
older than one year may not represent the current market conditions. Once comparable sales
are found we will make adjustments to the sales price to allow for some of the differences in
the houses. Using these adjusted sales we can then develop an indication of what the Market
(or the average buyer) is likely to pay for your house.
Other methods of valuation include the cost approach and the income approach. e cost
approach method is based on the premise that value is indicated by the current cost to
construct a new improvement (house) minus accrued depreciation (wear and tear) plus the
value of the site. is approach is most accurate when the subject is new or near new. It may
not be a reliable method in an older home. e Income Approach is used primarily for
commercial or rental property. Most times it is not applicable to Single Family Residential
Once the appraiser has completed all of the applicable approaches to value we then analyze
the results and arrive at an opinion of value that reflects the interaction of buyers and sellers
in the market.
The report formats for residential home appraisals are typically a "1004" or "2055", however there are many other form formats that lenders request for residential valuation.