What Is A Residential Appraisal?

Sales Comparison Approach - QUICK START GUIDE

Starting with the basic "Market Approach" (cost and income approaches not included at this time), we go straight to comparing comparables to the subject property and making adjustments for the differences. Following in this page and in a number of links to other pages, I will detail much of the "Sales Comparison" appraisal process  in the page below and links to other pages.

Adjustments are made for individual differences between the comparable sales and the subject property. The comparables (the sale usually less than 1 year old) are always adjusted to compare more equally with the subject property.  The adjustments are added or subjected from the sales prices of the comps to derive an adjusted sales price to compare to the property being appraised.

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Mantra:    1. Comp superior - Negative Adjustment !

                        2. Comp Inferior - Positive Adjustment !

Feature	Subject	Comp 1	+- Adjustment	Comp 2	+- Adjustment
Gross Living Area	2,690 SqFt	1,880 SqFt	+4,950	2,115 SqFt	-2,100
		C1 Inferior	Positive Adjtmt	C2 Superior	Negative Adjtmt
SemiFinished SF	664 Sq Ft	None	+7,968	None	+7,968
		C1 Inferior	Positive Adjtmt	C2 Inferior	Positive Adjtmt

The 2nd page of the URAR is where you develop the market approach  "estimated value", which on most residential appraisals is the most important value.   Adjustments are made on the second page of the URAR form as shown below:

 The information that is in the adjustment grid comes from:

1. The initial research, searching for comparables, pulling the  subject tax sheet, mapping for driving directions, questions for the homeowner.
2. Inspecting the Subject Property, measuring the house, taking pictures inside and out, and drawing the floor plan which is all just the tip of the iceberg.
3. Inspecting and analyzing the neighbor, studying aerial photos, looking for good maintenance or lack thereof, real estate mixes, trend changes, etc.
4. Choosing 6-8 comparables to drive by: taking pictures, making notes, running an MLS sheet and a tax sheet on the comparable properties, and calling the listing agent to clarify information.
5.  Keying in the information on the subject property, choosing at least 3 comparables for comparison in the report. Confirming data and proceeding with the report.  Loading pictures of the subject and comparables, drawing the sketch on the computer, mapping the final comparables with the subject.  

Subject Information On 1st Page	Adjustment Grid 2nd Page
Subject Pictures	Comparable Pictures
Map Subject & Comps	Subject Sketch