Online Home Appraisal

Frequently Asked Questions

1. Would I need a property data report if I was thinking about buying, selling or refinancing a property?
2. What is a comparable sale?
3. Will I be charged for a report that I do not receive?
4. Can I give this information to my lender?
5. What is the difference between a Property Information/Automated Value Model report and an Appraisal?
6. What is ''Market Value"?
7. Why would a person need a home appraisal?
8. What is the difference between an appraisal and a home inspection?
9. 'What is a Special Flood Hazard Area (SFHA)?
10. What does "100-year flood" mean?
11. What is considered a contaminated site as referred to in the Comp-X Report?
12. What exactly is PMI and how can I get rid of it?
13. Which home renovations add the most to the price of a home?

The "Know Your Neighborhood" report contains value comparable sales information which allows you to review recent sales in the nearby area.  This information may help you determine an asking price, offer price or estimate the value of your home for refinancing purposes.  The more advanced Comp-X report contains the same information plus additional valuable data such as an estimated value, an estimated value range, mortgage and deed history, flood information, list of nearby contaminated sites, and earthquake information.  This additional information maybe valuable in researching a property that you are interested in purchasing. Please read (Disclaimer and Limitations).

2. What is a comparable sale?

An abbreviated term used to describe recent sales of properties which are similar in size, condition, location and amenities to a subject property whose value is being determined.

If the system fails to generate a report due to lack of available data, then the customer will not be charged.  Once you order a report (or reports), these reports will be generated and delivered through your internet browser and your credit card will be charged.  You must print or save a copy of the reports at time of delivery.

4. Can I give this information to my lender?

No, based on the "Terms and Conditions" you agreed to when ordering this report.  This information is not to be directly shared, reproduced or sold. Please review the (Terms and Conditions) for further information regarding this topic.

5. What is the difference between a Property Information/Automated Value Model (AVM) report and an Appraisal?

There is a significant difference.  Our reports rely on available data from sales reports, tax records, and loan information and are compiled without human interaction.  These reports are not intended to be used as a replacement for an actual appraisal.  Please read the (Disclaimer and Limitations).  Lenders use these same reports prior to ordering an appraisal to verify property records and recent sales comparables in the area.  An appraisal is performed by a professional licensed appraiser who has made a career out of valuing properties.  Further, the appraiser is an independent voice, with no vested interest in the value of a home.   Appraisers typically inspect a property during the appraisal process to determine the property's size, condition, functionality and features so that the best comparable sales can be used to estimate value.  Appraisers present their formal analysis in the form of an appraisal report.

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''.  They are the Sales Comparison Approach - which involves making a comparison to other similar, nearby properties which have recently sold.  The Sales Comparison Approach is normally the most accurate and best indicator of value for a residential property.  There is the Cost Approach - which is what it would cost to replace the improvements, less physical deterioration and other factors, plus the land value.  The third approach is the Income Approach, which is of most importance in appraising income producing properties - it involves estimating what an investor would pay based on the income produced by the property.

Therefore, A Property Information/Automated Model report delivers data used to determine a ''ball park figure'' of value. An appraisal delivers a defensible and carefully documented opinion of value.

6. What is ''Market Value?''

Market value or fair market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.  Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

7. Why would a person need a home appraisal?

There are many reasons to obtain an appraisal with the most common reason being an actual appraisal is normally required for all real estate and mortgage transactions.  Other reasons for ordering an appraisal include:

• To obtain a loan.
• To lower your tax burden.
• To establish the replacement cost of insurance.
• To contest high property taxes.
• To settle an estate.
• To provide a negotiating tool when purchasing real estate.
• To determine a reasonable price when selling real estate.
• To protect your rights in a condemnation case.
• Because a government agency such as the IRS requires it.
• If you are involved in a lawsuit.

8. What is the difference between an appraisal and a home inspection?

The appraiser is not a home inspector nor does he/she do a complete home inspection.  An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation.  The standard home inspector's report will include an evaluation of the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

9. What is a Special Flood Hazard Area (SFHA)?

A SFHA is a geographical area designated by the Department of Housing and Urban Development as having an above average risk of flooding.  In support of the National Flood Insurance Program (NFIP), FEMA has undertaken a massive effort of flood hazard identification and mapping to produce Flood Hazard Boundary Maps, Flood Insurance Rate Maps, and Flood Boundary and Floodway Maps. Several areas of flood hazards are commonly identified on these maps.  One of these areas is the Special Flood Hazard Area (SFHA), which is defined as an area of land that would be inundated by a flood having a 1% chance of occurring in any given year (previously referred to as the base flood or 100-year flood).  The 1% annual chance standard was chosen after considering various alternatives.  The standard constitutes a reasonable compromise between the need for building restrictions to minimize potential loss of life and property and the economic benefits to be derived from floodplain development.  Development may take place within the SFHA, provided that development complies with local floodplain management ordinances, which must meet the minimum Federal requirements.  Flood insurance is required for insurable structures within the SFHA to protect federally funded or federally backed investments and assistance used for acquisition and/or construction purposes within communities participating in the NFIP.

10. What does "100-year flood" mean?

The term "100-year flood" is misleading. It is not the flood that will occur once every 100 years.  Rather, it is the flood elevation that has a 1- percent chance of being equaled or exceeded each year.  Thus, the 100-year flood could occur more than once in a relatively short period of time.  The "100-year flood" which is the standard used by most Federal and state agencies, is used by the National Flood Insurance Program (NFIP) as the standard for floodplain management and to determine the need for flood insurance.  A structure located within a special flood hazard area shown on an NFIP map has a 26 percent chance of suffering flood damage during the term of a 30-year mortgage.

11. What is considered a contaminated site as referred to in the Comp-X Report?

The report contains information on properties shown in state and federal records as hazardous or contaminated waste sites.  Local government agencies will have additional information regarding these sites.

12. What exactly is PMI and how can I get rid of it?

PMI stands for Private Mortgage Insurance.  It insures a lender against loss on homes purchased with a down-payment of less than 20%.  Once equity in the home reaches 20% you can typically petition your mortgage lender (with proof that your equity in the home is 20% or greater) eliminate the PMI.

13. Which home renovations add the most to the price of a home?

The answer to this is different depending upon the location of the home.  Different markets value amenities differently. Adding a central air conditioner in Houston, Texas may add significant value, while putting one in a home located in Buffalo, New York might not have much impact.  As a rule, the most value returned from renovating a home comes in the kitchen.  According to one national survey, kitchen remodels returned an average of 88% of the investment.  In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home.  Bathrooms were second, returning 85%.