• SERVICE AGREEMENT LETTER

After speaking with or corresponding with Appraisal Alliance, and choosing to order an appraisal, the client will be provided with a Services Agreement letter. The letter may either be emailed to the client or it can be given to the client at the time of inspection. The letter clarifies what has been ordered and includes pertinent information about the property and the report. The form is to be completed either before the Appraiser arrives for the inspection or at that time of the inspection if assistance is desired. 

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• APPRAISAL INSPECTION 

When an appraisal inspection is ordered, the appraiser will set an inspection date and time with the client or anyone of the client's choosing, age 18 or older. At the inspection, the appraiser will measure the gross living area of the residence, inspect the property, and take photos of the interior and exterior. The appraiser will also take notes regarding amenities, condition, and other pertinent facts. At the conclusion, the appraiser may ask the client a few simple questions. 

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• APPRAISAL REPORT

During the appraisal process, the appraiser collects information regarding the subject property and several other properties that will be used as comparables. The comparables are other properties in the market area that are similar to the subject property and will be used to base the appraiser's estimate of market value. The comparables are selected from property listings found on a local Multiple Listing Service (MLS). Other information is considered, including market condition trends and other market factors. After a thorough examination of all information, adjustments are made to the comparables to account for inferior and superior differences relative to the subject property. The appraiser then reconciles all of the information and formulates his/her opinion of market value and completes the appraisal report.

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Comparables are chosen based on industry standards and guidelines regarding gross living area, site size, age of the properties, overall condition, distance from the subject property, date of closing escrow, and other factors. For example, typical industry standards include the following regarding the comparables relative to the subject property: close of escrow within the past six-months; gross living area (GLA) within 25%; age within 30%; property within a one-mile radius; gross and net adjustments within 25% and 15%, respectively; single adjustments less than 10%; etc. In short, there are certain factors that appraisers look at in order to filter the number properties considered to include the most similar, suitable, and appropriate properties to be used as comparables. For instance, your neighbor's house that sold a year ago, or is 40% larger, most likely will not be used as a comparable. A house that is very similar to yours but is located 1.25 miles away most likely will not be used. Often, the above listed examples are not even seen by the appraiser during the search for comparables as the MLS listings are queried by the appraiser using parameters that included many of the above listed standards. Additionally, the standards and guidelines are just that. If there are few properties that meet the guidelines in selecting comparables, the standards may be expanded. For example, GLA may increase to being within  35%, the radius from the subject property may expand to 1.5 miles, or the close of escrow lengthened to one-year. Conversely, if there are numerous properties that meet the guidelines, the standards may be reduced. For example, GLA may be decreased to being within 15%, the radius may be reduced to 0.5 miles, or the close of escrow may be shortened to three months.  

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Note regarding online real estate database estimates, also known as automated valuation models (AVMs): Homeowners often use online real estate sites/AVMs that give estimates of real estate values. These estimates are typically based on local sales information combined with the use of mathematical algorithms. The algorithms provide "automated reasoning," which is based on assumptions not necessarily specific facts regarding a particular property. In short, this means that a property's condition, specific location, condition, view, etc., may not be taken into consideration when the value is calculated by the use of algorithms. For example, an online estimate may indicate your home is worth $400,000. However, if your house has not been significantly updated or remodeled in many years, located adjacent to a major highway or busy street, the market value may be less. Conversely, maybe you have a great view of the San Francisco Bay, or you have remodeled your kitchen and bathrooms, your house may be worth considerably more. In summary, online estimates are a tool but they are not meant to replace an appraisal performed by an experienced, trained, professional real estate appraiser. 

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• DELIVERY OF REPORT

Once the report is completed, the fastest and most efficient delivery method is for the report to be emailed to you. If this is not possible, a hardcopy can me mailed to you. ​

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• PAYMENT FOR SERVICES

Payment in full is due at the time of inspection. We accept cash, checks, Zelle transfers, and major credit cards (credit card charges may require a nominal fee for processing). ​