3 Types of Appraisal Information to Look For When Driving Your Comps

Published by Merryl Dusaran on February 27, 2020

Comparable sales, also known as a “comparable” or collectively called “comps,” are the prices paid for similar houses that are comparable in location, condition, features, and size. Comps are essential in real estate appraisers because they are used to determine a home’s value. Using comps, buyers can decide on the price offer while sellers figure out how to price their home competitively in the market. When driving their comps, real estate agents and appraisers can pull up details they need on their comparables from a Multiple Listing Service (MLS) database.

Accurately pricing a property is crucial factor in appraisals. What if you priced the property too low or too high? What if you overlooked some areas that affect the property’s worth? Precise information for comps is indeed the one thing to keep in mind, so here are the types of appraisal information to find that are important to the appraiser.

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3 Types of Appraisal Information to Look For When Driving Your Comps

3 Types of Appraisal Information to Look For When Driving Your Comps

Comparable sales, also known as a “comparable” or collectively called “comps,” are the prices paid for similar houses that are comparable in location, condition, features, and size. Comps are essential in real estate appraisers because they are used to determine a home’s value. Using comps, buyers can decide on the price offer while sellers figure out how to price their home competitively in the market. When driving their comps, real estate agents and appraisers can pull up details they need on their comparables from a Multiple Listing Service (MLS) database.

Accurately pricing a property is crucial factor in appraisals. What if you priced the property too low or too high? What if you overlooked some areas that affect the property’s worth? Precise information for comps is indeed the one thing to keep in mind, so here are the types of appraisal information to find that are important to the appraiser.

3 Types of Real Estate Appraisal Information to Produce During On Site Inspection

Essential Real Estate Appraisal Data From Site Inspections

In a nutshell, inspections do not just deliver a general impression of the overall physical condition but also reveals those areas that needed an in-depth investigation, like foundations and structural framing, roof conditions, and home ventilation. Inspections are vital because what the inspector or appraiser may conclude about the property will have an influence on the property’s selling price. Inspections typically take about 3 to 4 hours, so you must know beforehand what important appraisal information is needed from an on-site inspection.

10 Types of Appraisal Information to Find When Doing Property Research

10 Real Estate Appraisal Data Points to Find for Property Research

Property research is crucial in making real estate verdicts. It provides information relevant to the buying-selling negotiations and decision-making. But before you start going around in circles, going back and forth with little to no information, you need to know where to begin. So, here’s a starting point: The ten types of appraisal information to find when doing property research.

Your client may require more information about the property, depending on the purpose of the appraisal, but these 10 types of information are the ones commonly sought after.

How the Appraisal Report Writing Workflow Works

Appraisal report writing looks easy at first glance, but the lack of complexity belies the magnitude of the process.

First of all, a single report may contain more than a hundred data points that must be accurate and up-to-date. Second, the report should include photos, sketches, and comments from the appraiser and this can only be done through on-the-ground inspections and a comparables research that brings the appraiser through the neighborhood where the property being appraised is located.

Thus, it’s a collaboration between the appraiser and the agent who works to keep all the data together in one place.