I’m not refinancing. I’m not selling. Why do I still need an appraisal?

Let me set the scene, a scene that replays itself again and again in my line of work. I arrive at a house to do an appraisal inspection for a refinance transaction. The homeowner and I exchange pleasant introductions, and I provide a quick summary of what I’ll be doing while at their home. As I’m talking to the homeowner, I notice a familiar expression on their face, a familiar look in their eyes. Their jaws tighten a bit. They look and act stressed, sometimes saying outright, “I am really worried about the value of my home.”

These homeowners are practically terrified. The reason? They have already begun the refinance process with the lender and yet have no idea what their home is worth. What they do know is that if the valuation doesn’t come in at the right amount, they might be forced to accept more costly financing terms or lose the loan altogether.

That feeling of dread is one of the primary reasons TSR Appraisals provides the ‘Just Cuz’ appraisal, a virtual valuation service that can help ease some of the stress. Why? Because with the ‘Just Cuz’ appraisal, you’ll get to know the value of your home long BEFORE you engage with a lender at a price significantly less than the cost of a traditional appraisal.

Outside of having a ’Just Cuz’ appraisal done prior to refinancing, there are other scenarios where knowing the value of your home can be beneficial. Maybe the last of your kids is going away to college in the fall and you’re considering downsizing. Will you be able to get enough from the sale to buy the home you want. Or you’re a young couple living in a one-bedroom condo and you have a baby on the way. Is the value position of that condo strong enough to allow you to sell and upsize?

These scenarios are among the many reasons why TSR Appraisals offers the ‘Just Cuz’ virtual appraisal. It is a unique valuation tool that provides homeowners with a higher level of confidence BEFORE they make major home-related decisions. The cost for this service is much lower than traditional appraisals, and the data and market analysis that goes into writing the ‘Just Cuz’ appraisal report is just as thorough and well developed as the longer more traditional appraisal reports.

What follows are the 6-steps of the ‘Just Cuz’ appraisal service. Understanding the process can go a long way toward easing the stress many homeowners feel when considering having their homes appraised.

• Step 1: Go to https://www.tsrappraisals.com/homeowner-questionnaire-form to complete the Homeowner Questionnaire. This is where the homeowner provides information about their home. These questions will focus on specific features of the home, such as the types of flooring in each room, whether luxury vinyl plank, hardwood, carpet, or something else. The form also includes questions about the types of countertops in the kitchen and bathrooms, asking for details about materials, such as granite, laminate, or quartz. If a homeowner is uncertain about the type of countertops or types of flooring they have, they can leave those questions unanswered. During the virtual walk-through, the appraiser will be able to easily determine the type of material of any items in question.

  
  
  
  
  

  

  
  
  
  
  

  Additionally, the form asks about any significant updates that have been made to the property, specifically those costing more than $2,000, such as renovations to the kitchen, major system upgrades or replacements like HVAC, or bathroom updates. This information ensures the appraiser has an accurate understanding of the home's features before proceeding with the virtual inspection. Once the homeowner completes the questionnaire, they submit the form through the website.

• Step 2: Within 24 hours from submission of the questionnaire, the homeowner receives an email with date/time options for scheduling the virtual appraisal. The homeowner responds to the email with their chosen date and time. The assigned residential appraiser might contact the homeowner prior to the virtual inspection with additional questions about the property.

• Step 3: Prior to the virtual appraisal inspection, the appraiser will review the homeowner’s answers to the questionnaire. With that information, along with any additional data about the property derived from other sources, the appraiser will begin conducting market analysis to determine the current value of the property by comparing it to similar homes in the same geographic area, known as "comps."

  
  

  This is the portion of the appraisal process that happens ‘behind the scenes’ and before the virtual appraisal inspection takes place. The appraiser analyzes recent sales of comparable homes, considering factors such as the square footage, age, location, and condition of the properties. Adjustments are made to account for differences between the subject property and the comps, such as bathroom count, lot size, or finished vs unfinished basements. Appraisers also factor in market trends, including whether property values in the area are rising, declining, or stable. Appraisers compile all the data to estimate the home's value within the context of the local real estate market.

  
  

  

  
  

  Paired sales analysis is one of the primary methods appraisers use to determine a property's value. This involves narrowing down the wider number of recent sales within the subject’s market to a smaller sample size of between 3 to 6 comparable properties that are the most similar in size, age, condition, and location to the home being appraised. The appraiser will adjust the sale prices of these comparable sales to reflect differences, such as beneficial views or an updated kitchen. By weighing these adjusted sale prices, the appraiser arrives at an opinion of value of the subject property. This approach ensures the appraiser considers both the specific attributes of the home and how it compares to similar properties in the area.

• Step 4: Once the data analysis is complete, the appraiser will summarize the information and provide a final value conclusion for the home. This conclusion is based on the findings from the market analysis, sales comparison, and any other relevant data collected during the appraisal process. The appraiser will review the subject property's unique features, adjusting for any differences with the comparable properties, to arrive at a fair market value. The final value conclusion will also reflect any local market trends and broader economic conditions that could influence the property’s worth. This comprehensive analysis allows the appraiser to confidently present the home’s value.

  
  

  

• Step 5: To complete the virtual appraisal inspection, the appraiser will use a video chat platform, such as Zoom, to interact with the homeowner. During the virtual visit, which generally takes 30-40 minutes, the homeowner will guide the appraiser through their home, starting from the exterior and moving through each room, ensuring the appraiser can view the relevant features. The appraiser will direct the homeowner on how to direct their device (usually a cellphone or tablet) and will capture screenshots of each room in the home.

  
  

  The images captured will allow the appraiser to virtually observe the property’s condition, layout, and any key details that could affect the value. This process allows the appraiser to assess the property as if they were physically present, despite the virtual nature of the inspection. The appraiser will also make sure to ask follow-up questions as needed, ensuring all relevant aspects of the home are documented.

• Step 6: After the virtual inspection is completed, the appraiser will upload the photos captured during the video chat and begin finalizing the appraisal report. This includes reviewing the data analysis and final value conclusion to ensure everything aligns accurately with the property’s condition and market trends. The appraiser will then sign off on the report, officially completing the appraisal process.

  
  

  The final appraisal report, complete with the appraiser’s value opinion, will be emailed to the homeowner within 2-4 hours following the virtual inspection. The invoice for payment for the service will be sent shortly thereafter. Depending on the sales activity within the homeowner’s market, the valuation given from the ‘Just Cuz’ appraisal report should remain relevant for 3-9 months. During that time, the homeowner could use this report to make informed decisions about their property or pursue refinancing options with greater confidence.

  
  

  

Our homes are often our largest single investment, and just like any other investment, the value of our home can change.  At TSR Appraisals LLC, we strongly believe homeowners should always know the value position of their home.

In an ever-changing market, take charge of knowing where your home stands.  Call 720-984-0199 and schedule your ‘Just Cuz’ appraisal today. Or learn more about this unique valuation service here.

Also, make sure to check out my post “Are you a Q4/C3 or Q3/C3?” to understand what appraisers look for when determining the quality and condition of your home. And want to be notified when new blogs get posted? Subscribe today!

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