Webster Texas Real Estate Appraisals

An appraiser will evaluate recently sold as well as currently listed houses in your neighborhood in completion of the sales comparison approach. Generally a sales comparison grid is used and adjustments are made to each of the comparable sales for impactful differences between the comps and the Subject for such items as location, gross living or building area, acreage, condition/effective age, market forces, quality of construction and noteworthy amenities. The outcome of the sales comparison approach is a span of adjusted values that suggest, post adjustments, a likely market value for the Subject.

Because a builder, never lived in house has not yet accrued any lose in value, it will appraise for higher than a similar existing house. While the dirt will not depreciate in value – houses will. This can be clearly seen in the life expectation of many of a home’s materials and systems. Case in point, almost all 30-year roofs usually need replacing after around twenty years. Conversely, a resale home that is only four years old still has four years of value loss throughout all components and this must be factored into the appraisal report. Finally, recently built properties most often allow for some personalization to the house which means the homebuyers get precisely what they want when they move into without needing to carry out changes.

There are frequently transaction specifics in the contract that an appraiser must consider to determine if they affect the appraised amount. Of the most concerning are the conditions of the contract and whether or not they are common for the market. Specific stipulations such as seller contributions towards the buyer’s mortgage costs could affect the appraised sales price estimate if not inline with what is commonplace in the market. A real estate appraiser will also confirm that the homebuyer recorded on the sales contract matches the buyer recorded for the appraisal report.