What Is an Appraisal?

A home purchase can be the most important financial decision many of us ever make. Whether a primary residence, vacation property, or investment, the purchase of real estate is a detailed financial transaction requiring multiple parties working together.

The Appraiser's Role

Who ensures the real estate is worth the amount being paid? That's where the appraiser comes in. We provide an unbiased opinion of what a buyer might expect to pay — or a seller receive — for a parcel of real estate, where both parties are informed. A licensed, certified professional appraiser from Norris Property Consultants will ensure you, as an interested party, are fully informed.

The Inspection

Our first duty at Norris Property Consultants is to inspect the property to ascertain its true condition. We physically verify aspects such as the number of bedrooms and bathrooms, location features, and overall condition. The inspection often includes a sketch of the property to verify square footage and layout. Most importantly, we look for any amenities or defects that would impact value.

The Cost Approach

We analyze local building costs, labor rates, and other factors to determine the replacement cost of the property, minus physical deterioration, then add the land value. This commonly sets the upper limit on what a property would sell for.

Analyzing Comparable Sales

Appraisers understand the value of specific features in their communities. We research recent transactions nearby and find "comparable" properties. Using knowledge of the value of features like fireplaces, room layout, upgrades, extra bathrooms, or construction quality, we adjust the comparable properties to align with the subject property.

At Norris Property Consultants, we are an authority in knowing the worth of real estate features in Phoenix and Maricopa County neighborhoods. This approach is most heavily weighted when an appraisal is for a home sale.

The Income Approach

For income-producing properties such as rental homes, we consider the amount of income the property generates along with comparable rents in the area to determine current value.

The Final Value

After analyzing all applicable approaches, the appraiser states an estimated market value. While this is the best indication of what a property is worth, it may not be the final sales price. Regardless, the appraised value is typically used as a guideline for lenders. An appraiser from Norris Property Consultants will help you discover the most fair and balanced property value so you can make informed real estate decisions.