The appraisal report is completed after the inspection. We typically complete the report within two business days after the inspection. Challenging properties may take longer. The report will contain a lot of information. Some of the information contained will include the scope of work, assumptions made, description of the property, photos, and how the value was derived.
The “Sales Comparison Grid” is where most people jump to for details on the calculations. It will list the key features of the subject property. Next to it will be three or more similar properties with their features listed including the sales price. There will be a dollar amount next to each feature that is different from what the subject has. This amount is indicating how much the appraiser adjusted the sale price for that feature. These values are not standard values. The appraiser derives these values from the comparable properties and familiarity with the local market.
The “Adjusted Sales Price” of each comparable is the sum of the sale price and all of the feature adjustments. All of the comparables should have a similar adjusted sales price. The appraiser examines these values to assign an appraised value to the property.