Understanding The Appraisal Part 3: The Cost Approach

A Closer Look At The Cost Approach There are three approaches to value that can be used in a residential appraisal. They are the sales comparison approach, the income approach, and the cost approach. Today I will be explaining the cost approach to value. This approach is not given as much attention as the sales […]

Understanding The Appraisal Part 2: Condition and Quality Ratings

A Closer Look at Condition and Quality Ratings Last week I kicked off my “Understanding The Appraisal” series by discussing the Adjusted sale price of comparables. This week we’re going to look at the Condition and Quality Ratings assigned to the subject property. Prior to the introduction of the Uniform Appraisal Dataset (UAD), appraisers would […]

Desktop Appraisals: Pros and Cons

Are Desktop Appraisals the Answer? The big news in the real estate, mortgage lending, and appraisal industry is desktop appraisals. In a recent announcement, FHFA Acting Director Sandra Thompson revealed that both Fannie Mae and Freddie Mac will continue to allow appraisals to be conducted remotely. This was very happy news for all of the […]

What Is A Competitive Market Area?

Competitive Market Area Explained A competitive market area is something that I write about quite a bit when discussing comparable sales selection. It answers a lot of questions about where agents can look for sales when pricing a home. The sales comparison approach is the most recognized approach for non-appraisers. Most people know what a […]

Anatomy of a Sales Comparable

Importance of the Sales Comparable In the past, I have written extensively about sales comparables and their use within the appraisal report. I have explained what makes a good sales comparable and the process you should take in choosing them. The sales comparison approach is typically given the most consideration in the appraisal report. There […]

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