An appraisal is estimation allowing the appraiser to come to an opinion of value. This opinion or estimate is arrived at through a formal method that generally uses the three main "common approaches to value". One of the methods in use is the Cost Approach, which finds what it would cost to replace the improvements to the home, minus depreciation and physical dilapdiation, adding the land value. The most common approach in figuring the value of a house is the Sales Comparison Approach which concerns figuring a comparison to comparable homes close by. The Sales Comparison Approach is commonly the most definitive and best indicator of value for a house. The Income Approach is primarily used for figuring out the cost of income-producing properties based on what an investor would pay based on the amount of income a property produce.
A key party in discerning the worth of a residence, an appraiser makes an unbiased opinion on the value of a property used in a real estate transaction. A formal investigation is presented by the appraiser in a report.
Home inspectors do not provide an opinion of value and are not appraisers. The point of a home inspection is to evaluate the structure of the home from foundation to attic. The usual home inspector's report will contain an evaluation of the integrity of the house's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and accessible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.
Frankly, the difference is like night and day. What the CMA depends on are vague trends. The appraisal is based on similar definite comparable sales. Also, the appraisal checks other factors like condition, area and building prices. The CMA will provide a non-specific figure. An appraisal delivers a defensible and carefully documented opinion of value.
MAC Appraisal Company is always eager to handle any concerns you might have about appraisals or real estate in Cooper County. Don't hesitate to contact us today.