The Cary Group is a full service Real Estate Appraisal and Consulting firm specializing in the valuation of residential properties. The company services all of Middle TN including Nashville and is a recognized leader in Nashville residential property valuation. The Cary Group combines a focus on customer service with the utilization of technology to provide clients with the highest quality and fastest delivery times in the market.
Contact The Cary Group by calling 615-373-3472 or by email: email@example.com
How to Prepare for a Nashville Property Appraisal
Before an Appraiser arrives, there are a few things you should know. By law, an appraiser must be licensed by the state of Tennessee to perform Nashville appraisals prepared for federally related property transactions. Also by law, you are entitled to receive a copy of the completed appraisal report from your lender. To facilitate the appraisal process, it's helpful to have these documents ready for your Nashville appraiser:
- A plot plan or survey of the house and land (if readily available)
- Information on the latest purchase of the property within the last three years
- Written property agreements, such as a maintenance agreement for a shared driveway
- List of personal property to be sold with the home
- A copy of the current listing agreement, broker's data sheet, and Purchase Agreement if a sale is "pending"
- Most recent real estate tax bill and or legal description of the property
- Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
- A list of "Proposed" improvements if the property is to be appraised "As Complete”
- Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
- Information on the Homeowners Association or condominium covenants and fees
- Title policy that describes encroachments or easements
What is an Appraisal and Why Do I Need One?
An appraisal is a thought process leading to an opinion of value. This opinion or estimate is arrived at through a formal process that typically uses the three ''common approaches to value''.
So what goes into a Nashville real estate appraisal anyway? It all starts with the inspection. An appraiser's duty is to inspect the property being appraised to ascertain the true status of that property. He or she must actually see features, such as the number of bedrooms, bathrooms, the location, and so on, to ensure that they really exist and are in the condition a reasonable buyer would expect them to be. The inspection often includes a sketch of the property, ensuring the proper square footage and conveying the layout of the property. Most importantly, the appraiser looks for any obvious features - or defects - that would affect the Nashville homes value.
Once the site has been inspected, an appraiser uses two or three approaches to determining the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach:
The Cost Approach - what it would cost to replace the improvements, less physical deterioration and other factors, plus the land value. The Sales Comparison Approach - involves making a comparison to other similar, nearby properties which have recently sold. This approach is normally the most accurate and best indicator of value for a residential property in Nashville, TN.
The Income Approach - involves estimating what an investor would pay based on the income produced by the property.
…Speaking of Home Appraisals in Tennessee
Most people have heard various appraisal industry terms, but we all need a refresher course from time to time. Here are a few of most common terms and definitions that will serve you well in your search to find the right home appraiser in Nashville and Middle Tennessee:
Adjustment: When comparable properties have been identified, the appraiser adjusts the value of the subject property according to differences in living area, acreage, frontage, amenities and the like. This is where the professional expertise of an appraiser is most valuable.
Chattel: Personal property that may be on the subject property but which does not figure into the opinion of value in the appraisal report.
Comparable or "comp”: Properties like the subject property nearby which have sold recently, used as a basis to determine the fair market value of the subject property. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for comparable selection.
Drive-by: An appraisal that is limited to examination of comparable sales and a determination that the property is actually there and has no obvious defects or damage visible from the outside. Can be performed for a mortgage company - Fannie Mae's form for this type of appraisal is its 2055, so you may hear a drive-by referred to as a "2055."
Fair market value: The appraiser's opinion of value as written in the appraisal report should reflect the fair market value of the property -- what a willing seller would pay a willing buyer in an arm's-length transaction.
GLA: "Gross Living Area," the sum of all above grade floor space, including stairways and closet space. GLA is often determined using exterior wall measurements.
Latent defects: A defect on the property that is not readily apparent but which impact the fair market value. Structural damage or termite infestations are examples.
Useful life: The time during which a property can provide benefits to its owner.
URAR: Short for Uniform Residential Appraisal Report, Fannie Mae form 1004, it is the form most lenders require if they need a full appraisal (that is, with walk-through inspection).
USPAP: Short for Uniform Standards of Professional Appraisal Practice, USPAP promotes standards and professionalism in appraisal practice, and is often enacted into law in a state.
Walk-through: An inspection that includes a visit to each part of the interior of the house used in estimating value.
Remember, when purchasing or selling real estate in Middle Tennessee, trust The Cindy Jasper HummerHomes Team. We specialize in Belle Meade, Brentwood, Cool Springs, Franklin, and of course Fieldstone Farms and The Governors Club.