Kimber Explains
Your
Home’s Appraisal
HERE ARE THE MAJOR STEPS
FOLLOWED BY MOST HOME APPRAISERS:
• Research the property – size, number of rooms, number of
bathrooms, year built,
lot size, square
footage.
• Gather recent sales data from similar properties in the area
or in the close
surrounding area. Ideal
is to locate three or more similar homes that have sold
and closed escrow within the past 6 months.
• Inspection of the property and the exterior of the comparable
homes which have
been selected to
estimate the value of the home. Exterior photos are usually
taken of all properties
including the home for sale. During the interior inspection
the appraiser will detail any items that would
add or subtract value from the
home. A floor plan may also be drawn during
this inspection.
• For the homes selected for use in the comparable sales data,
the appraiser looks
to the Multiple Listing
Service (MLS), public records, and the California Market Data
Cooperative (CNDC) to
help determine the interior condition of the homes and
amenities comparable to
the home for sale.
• The appraiser then reconciles all of the comparable properties
and determines a
final estimated value
of the home for sale.
Having an idea of what is involved when
your home is to be appraised can help you maximize the value of your home and
get you a top dollar sale.
A home inspection is an objective visual examination of the
physical structure of your home and is standard procedure when selling a home.
Most buyers want a third-party home inspection to find out about any defects or
problems before completing the escrow and taking ownership of the home. Some
sellers also
schedule their own home inspection prior to listing their home
on the market to determine if any repairs are needed prior to bringing
prospective buyers into their home.
W H AT Y O U N E E D T O K N O W A B O U T A H O M E I N S P E C
T I O N
The standard home inspection report will include an evaluation
of the home’s air system
(heating or air conditioning), interior plumbing, electrical systems,
the roof, the attic, visible insulation, walls, ceilings, floors, windows,
doors, the foundation, and the basement if applicable.
If a problem is detected the inspector may also be able to refer
you to the appropriate specialist for further evaluation. The fee may vary from
coast to coast but is generally based on the size of the home, features of the
house, its age, and any particulars of the house.
As in all things in life, price may not be the best determinant
in regards to who will give you the most thorough and professional home inspection.
An inspector’s qualifications including training, experience, and professional affiliations should be
taken into consideration. You can check these items through the Better Business
Bureau and verify the inspector’s license membership with a reputable trade organization. Your agent may
be able to recommend several reliable professional inspectors from which you may
choose.
Do I have to be present at the home inspection?
Although it’s not necessary it would be recommended that the homeowner accompany the inspector. You can observe, ask questions, and point out details that are not readily apparent. You’ll also find the written report easier to understand if you’ve gone through the property firsthand through the inspector’s eyes.
Can a house fail an inspection and what do I do if the report reveals
problems?
The home inspection is an examination of the current conditions
of the home and therefore cannot pass or fail – it simply reports its findings. It is not
an appraisal and does not determine market value. As the seller you may choose
to repair the items or consider lowering the listing price or refunding an
amount of money equal to the repairs and letting the buyers conduct the work.