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Electronic Appraiser
Sample
File No. Demo  

APPRAISAL OF
9907 Nantuckett Cove Subdivision No 1 Springfield, MI 54321


Single Family Property

LOCATED AT:
9907 Nantuckett Cove Subdivision No 1 Springfield, MI 54321

FOR:
      Electronic Appraiser
150 Main Street Anytown, USA 99999

BORROWER:
Mrs. J. Borrower

AS OF:
December 12, 2005

BY:
Joseph Appraiser




Polaroid Digital Solutions
Sample File
File No. Demo
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December 15, 2005

Electronic Appraiser Demo: 5705 Red Arrow Hwy Stevensville, MI 49127

File Number: Demo

Dear Electronic Appraiser,

In accordance with your request, I have personally inspected and appraised the real property at:

9907 Nantuckett Cove Subdivision No 1 Springfield, MI 54321

The purpose of this appraisal is to estimate the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements.


In my opinion, the estimated market value of the property as of December 12, 2005 is:

$180,000

One Hundred Eighty Thousand Dollars

The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications.

Sincerely,

Joseph Appraiser

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ADDENDUM

Borrower: Mrs. J. Borrower

 

File No.

Demo

Property Address: 9907 Nantuckett Cove Subdivision No 1 Case No.: 19981106180
City: Springfield State: MI  Zip: 54321
Lender: N/A

 

 

Neighborhood Market Conditions

Conventional financing is readily available at rates purchasers consider attractive and sellers need not negotiate a sale on financing related concessions. Local brokers are referring to the current situation as a "seller's market", with relatively short market times for all but the most difficult to market properties. While local market conditions presently constitute a healthy supply/demand relationship there is one cloud on the local economic horizon. A large area manufacturing firm, has announced a plant closing phaseout of 1,500 jobs over the next two years. The layoffs have already begun but it is too early to estimate the full ripple effect on the local economy. While some new firms have moved into the area and some local employers have expanded, it is doubtful that the number of new jobs will fully offset the loss. Still, Subject marketability will be somewhat enhanced due to an under supply of homes in Subject price range and its location in such a desirable school district.

 

            SUBJECT PROPERTY PHOTO ADDENDUM    What's This?
Borrower: Mrs. J. Borrower

 

File No.

Demo

Property Address: 9907 Nantuckett Cove Subdivision No 1 Case No.: 19981106180
City: Springfield State: MI  Zip: 54321
Lender: N/A

 

   

FRONT VIEW OF SUBJECT PROPERTY

Appraised Value: $ 180,000

REAR VIEW OF SUBJECT PROPERTY COMPARABLE PROPERTY PHOTO ADDENDUM
Street Scene
   
Borrower: Mrs. J. Borrower

 

File No.

Demo

Property Address: 9907 Nantuckett Cove Subdivision No 1 Case No.: 19981106180
City: Springfield State: MI  Zip: 54321
Lender: N/A

 

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COMPARABLE SALE #1

9908 Nantuckett Springfield

COMPARABLE SALE #2

9931 Nantuckett Springfield

COMPARABLE SALE #3

938 Nantuckett Springfield

 

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Description of Subject Property. This includes the Address and the Appraiser's name.
 
 
The intent of the appraisal

An informed homeowner can save literally thousands of dollars on the most valuable investment that they may possess in their lifetime! Ordering a full appraisal in many cases is an important and wise decision.

Every appraisal is ordered for a specific reason. The following is a list of some of the reasons why a full blown "traditional" or "conventional appraisal" is necessary.

A New Mortgage through a local bank or lending institution is probably the most common reason for ordering an appraisal. However, it is important to note that the lending institution usually requires that the appraiser is on their "approved list". So it is always a good idea to check with the lender before ordering a report.

2nd Mortgage or Equity loan: This type of loan is typically used for borrowing on the equity (the difference between your existing loan and the current value of your home). Again it is a good idea to check with your lender on weather or not you may order this on your own. By ordering an appraisal you may be surprised at how much equity you have in your home!

Estate sale: In the event of the settling of a family estate where real estate is involved it is an excellent idea to have an outside source place a value on any real estate. An appraisal is performed by a unbiased 3rd party who has no financial reward in the outcome. An appraisal in this case often times will settle any possible disputes.

Divorce: Again it may become necessary to avoid lengthy and costly attorney fees by having an outside source intervene in obtaining a fair market value. Using Electronic Appraiser in the event of a pending divorce will be very effective.

Insurance: In the event that your property has been damaged, an appraisal will help to establish the current "as is" value of your for reimbursement and repair.

Selling your home is an excellent reason to order a full appraisal report. Although it may be necessary to hire a realtor to assist you, an appraisal will give you the objective opinion that you need when making the decision on a listing price. Sometimes realtors have a tendency to give the seller an unrealistically high expectation of value. This ultimately leads to disappointment and price reductions for the seller. Having a realistic view of your property value before you place it on the market may save you thousands of lost dollars otherwise.
 
 
Uniform Residential Appraisal Report (URAR)

This is the Fannie Mae approved form required for a Full Appraisal on a single family residence. This section describes the physical aspects of the home being appraised including current taxes and the prior sales price.

At first glance this form may look very confusing. However, once your eyes become accustomed to the little boxes, you will find that there is a fountain of information on the neighborhood in which the property is located and the physical characteristics of your property. Neighborhood property value trends and any adverse factors that may affect property values, such as the plans for a new industrial complex nearby would be noted in this section. The lot dimensions total land square footage, age and living area are all very important facts that are listed here. The comment section at the bottom will give you some insight into what the appraiser thinks about the current condition of your property. These comments are very important and may also assist you in determining what repairs should be made prior to placing your property on the market or may be required by the lending institution.
 
 
The Valuation section is probably the most important section of the entire report.

The Cost Approach relies on the cost to build plus land value. In older homes this approach is less important since the physical depreciation of the home has to be valued and is usually just a "guesstimate". The cost approach is far more useful when valuing a pre-construction or new construction homes. Current construction costs are applied by the appraiser and the land value is then added.

The Sales Comparison Approach is given far more weight in the valuation process. The best way to value your home is by looking at recent "sold properties". Each sold property is then compared to your home for similar, superior and inferior qualities.

Although many homeowners like to look at current properties for sale in the neighborhood, it is important to remember that A sold property is what someone was actually willing to pay and is a far more accurate yardstick to use when valuing your own home.
 
 
The addendum section will answer additional questions and give further explanations for unique and necessary adjustments used in arriving at the final estimate of value.

The addendum section is often utilized by the Appraiser to summarize or explain his methodology in the valuation process. Many times this section will help to explain to the reader why it was necessary to apply certain unique techniques. For example, the property may be in a rural area with few recent sales. The appraiser would then explain as to why it was necessary to use older sales rather than those that were farther away and less comparable.
 
 
One of the biggest differences between an on line instant valuation and a full traditional appraisal is that an appraiser actually goes to the property, measures and takes pictures. Typically there are three exterior photos of the subject property: front, rear and a street scene. Usually there are additional photos taken by the appraiser of the interior or any other outstanding features such as a pool, waterfront or golf course view. These photos will help you to see your house through the eyes of the appraiser.
 
 
Comparable Sales Photos:

This is a very important feature only offered by ordering a Full appraisal.

Photos of the Comparable Sales can be a great help when you are comparing them to your property. Property style and "curb appeal" make a huge difference when analyzing recent sales. For example, A ranch style may be far more appealing than a two story or bi-level home in an area where there are mostly adults and few children. Having a physical photo of the comparables allows you to look at the comparable information and photo at the same time.
 
 
This is a drawing whereby the appraiser actually measures the exterior walls of your home. All living area dimensions are calculated base on the exterior perimeter measurements. This drawing can prove to be extremely valuable to the homeowner especially in situations where the homeowner may be contemplating improvements like enlarging the kitchen or bathrooms or creating a better floor plan. Looking at a diagram is a useful and often utilized tool.
 
 
When available, a plot plan is given to show the subject property lot lines, dimensions and location.
 
 
This is a Map of the Subject Property in relation to Comparable Sales. It helps to show you just how far or near the comparable sales are in distance to your home. Obviously, the closer the subject is to the comparables the better, which usually means similar in size, design and appeal especially in newer tract type housing subdivisions. This becomes even more important when the comparable sale crosses over a major boundary line like an Interstate highway, which can drastically change one neighborhood from another.