League City Texas Real Estate Appraisals

Arms-length transactions are those in which neither party has a pre-existing relationship with the other and each act independently.

The appraisal is a research intensive procedure whereby the appraiser analyzes general and specific information, extracts applicable information, and uses this in his or her analysis to establish an estimate of value. The process has 6 major phases including: defining the the problem, initial survey and appraisal plan, data collection and analysis, applying the 3 approaches to value, reconciliation, final opinion of defined value. Typical of most all appraisals is the reconciliation of all 3 approaches to value which include Market Data, Cost and Income. All approaches that are completed are reconciled and settled to a single opinion of value which constitutes the most probable price for the home. In the majority of residential appraisals, especially those of single or two family dwellings, the recent sales comparison or market approach best reflects the desires of buyers and sellers and is the most convincing and reliable method of value.

A Fannie Mae URAR form report has many items needed for the secondary mortgage lending market that are not necessarily useful in a simple appraisal to find the market value. Each primarily rely on a direct sales comparison or market approach with a comparison grid to calculate the market value of the Subject property. The institutionally mandated 1004 form often has additional sections to meet lender security which is not necessary information for an independent appraisal client. An example of this extra data would be census and smsa information which is strictly for bank’s internal statistics on loans. Unlike lender reports, our gp reports were developed to be straightforward and easy to digest even for those unfamiliar with real estate wording.