What is an appraisal?

In the simplest terms, an appraisal is simply an opinion of market value. The appraisal process is guided by a series of rules called Uniform Standards for Professional Appraisal Practice (or USPAP for short), that help ensure the opinion of value is developed in a competent, unbiased, and reasonable manner that is as objective as possible.

HOW MUCH DO RESIDENTIAL APPRAISALS COST?

This can vary widely depending on your area, size of the home, complexity of the assignment, property type (multi-family is more expensive than single family), and so on. For the Denver metro, our standard appraisal fee starts at $450 for typical suburban track homes. For other cities in Colorado, our fee varies depending on assignment complexity and distance from our office. To get a firm quote, reach out to us here.

how do you come up with your opinion of value?

Our primary methodology for residential appraisals is the Sales Comparison Approach. We look at recently sold homes that are similar to yours in the area, make adjustments for differences in attributes such as quality, condition, square footage, and amenities, and then reconcile the data we have to come up with an opinion of value that represents the market value of the home as accurately as possible. It is important to note that the opinion of value is based on a specific point in time. Over time, markets change and so do home values. For this reason, most lenders do not consider an appraisal relevant if the effective date is more than 90 days old.

Do i need to clean my house before the appraisal?

A little clutter or mess from typical day to day living is no problem at all. We do not need your home to be “show ready” like you would if you were trying to sell your home or get it ready for a photoshoot. However, if there is significant clutter that covers large sections of flooring, walls, or otherwise prevents access into every area of the home, it could affect our ability to accurately assess the condition of the home and compare it to similar properties in the area.

What can i do to increase my home’s value?

This depends on a variety of factors. If you have a brand new home, there typically is not much you can do aside from finishing out a basement. For suburban homes and condos over 20 years old, we typically recommend looking at the most expensive remodeled homes in your neighborhood with similar square footage and features (beds/baths/etc) and seeing what quality and kinds of finishes they have done. Some neighborhoods and markets support high end finishes, while others do not. You do not typically want to be the biggest and nicest home in your neighborhood, as you tend to get less return on your investment. This analysis is case by case and we would be happy to help either with a free consultation call, or a remodel appraisal (known as ARV) to determine what value you could add to your home.

HOW LONG IS AN APPRAISAL GOOD FOR?

Most lenders and other professionals consider an appraisal good for 90 days, but it can be less in a rapidly changing market.