Huffman Texas Real Estate Appraisals

Dollar per sq. ft. is a simplistic way of estimating estimate of sales price where you multiply living area x sqft price. While you can certainly extract a dollar per square foot on the Subject AFTER the sales price estimate has been estimated, it is not a predominant indicator of value. As such, dollar per square footage is a lagging index that can only be determined AFTER the appraisal has been carried out. Another item to consider is lot area. Price per square foot does not factor this in at all but it is indeed a significant part of most home values.

Really, it’s apples and kiwis. A comparative market analysis will predominately be comprised of a market comparison approach. Appraisals use comparable properties with a much greater depth of adjustments made to them. Land and structure costs are as well important in an appraisal. A CMA concludes a “ball park figure”, an appraisal concludes a tenable and carefully documented opinion of value. But the most notable factor is the party creating the report. real estate agents are not obligated to posses market competence or understanding of property valuation to deliver CMAs. In contract to Realtors, a house appraiser is required possess explicit market expertise when carrying out an appraisal. Realtors are also enticed to estimate a property sales price estimate that they think meets the sellers expectations as a means to to sign a listing. Appraiser’s have no concern in the value of the property since they are compensated with a flat fee.

A general purpose form avoids much of the financial institution required data, while necessary for government regulated lending practices, but can typically be useless for a private and personal use. Both predominantly rely on a direct sales comparison or market approach with a comparison grid to determine the market value of the Subject. The institutionally mandated 1004 report comes with additional filed to satisfy lender security which is not required data for a private appraisal customer. An example of this superfluous data would be census and smsa numbers which is strictly for bank’s internal statistics on loans. The GP forms we deliver to private clients will satisfy any appraisal use and are very easy to read and comprehend.