An appraisal is an unbiased estimate of what a buyer might expect to pay, or a seller receive, for a real estate parcel when the buyer and seller are informed parties acting in their own interest. Most people turn to a licensed professional appraiser to give them an accurate estimate of the value of their property. Inspection The appraiser must inspect the subject property to learn the condition, age, size and features. She sketches the floor plan and takes notes on every room, attic and basement. The exterior is observed on all sides and is documented by photographs of the front, rear and the street view. The improvements are measured on the exterior to calculate the accurate above grade square feet of living area. Data is gathered from the neighborhood, such as zoning, trends and uses of neighboring properties in order to analyze the highest and best use of the subject property. Sales Comparison Approach The appraiser researches recent sales in the vicinity and finds properties which are similar to the subject property. The sales prices of these properties are used as a starting point for calculating the value of the subject. The appraiser uses her knowledge and experience to adjust the comparable properties to more accurately portray the subject. For example, if the comparable has a deck and the subject lacks one, the appraiser will deduct the value of he deck from the comparable’s sale price. If the subject has a second bath, and the comparable does not, the appraiser will add the value of the second bath to he comparable’s sale price. Three or more of the best sales are used in reconciling to the central tendency. The sales comparison approach to value is the method most often used, and it is the most accurate. Cost Approach The cost to replace the improvements as new construction is calculated based on current building costs. Depreciation is deducted from the cost new. The depreciation is calculated based on the effective age of the property; however, the effective age can be less than the actual age if the home is well cared for and is remodeled or updated. Vacant land sales are researched to arrive at a value for the site, and the site is added to the depreciated value of the improvements to arrive at a final value. This method is most reliable if the home is new or less than twenty years old. Income Approach This method is appropriate when the subject is an income producing property. A survey of similar rental properties is made to arrive at a fair market rent for the subject. Sales of rented properties in the area are analyzed to establish a gross rent multiplier for this type of property in the neighborhood. This is the ratio between the sale price and the gross rent for the property. Then this calculated gross rent multiplier is applied to the subject’s fair market rent to arrive at an opinion of value. An appraiser can use one, two or all three approaches to value, whatever is appropriate for the type of property being appraised. The appraiser uses her knowledge and experience to reconcile the approaches and arrive at a final opinion of value for the subject property.