There are 3 approaches to value that are accepted in appraisal theory.
The first and most commonly used is the sales comparison approach. After the appraiser inspects the subject property and gathers all of the data necessary, they will go back to the office and search on the MLS for similar properties that have sold recently and are in close proximity to the subject property. In the sales comparison approach, the appraiser will make adjustments to the value of the comparables selected based on differing factors as compared to the subject property. Examples could be location, lot size, style, condition, number of bathrooms, square footage, basements, garages, etc. A professional appraiser will know how to make appropriate adjustments for each differing amenity. After the comparables have been adjusted, each comparable will have an adjusted value. Then the appraiser will reconcile the estimate of value for the subject property within the range of adjusted values of the comparables. Fannie Mae guidelines suggest that the net adjustments shouldn’t exceed 15% and the gross adjustments shouldn’t exceed 25% for each comparable, however this is sometimes hard to avoid, especially when dealing with more unique properties. The most difficult adjustment to make is for a view as it can be so subjective. A million dollar view to one person can be just another view to someone else.
The paired sales analysis can be an excellent tool in deriving at what an appropriate adjustment should be when it is available. For example, if the subject property is in a townhome development and two homes in that development sold recently, both identical except one has a finished basement and sold for $110,000 while the other one that has an unfinished basement and sold for $100,000, one can deduce that a finished basement is worth approximately $10,000. Unfortunately for the most part, examples like this are extremely hard to come by.
The second approach to value is the cost approach which determines how much would it cost to replace or rebuild the structure. This approach is more commonly used for special purpose properties. In this approach, items like depreciation, building material costs, labor rates, and land value are taken into account. Furthermore, there are concepts like “economic life” and “effective age” that are considered as well. Of the three methods, this one is least used.
The third method is called the income approach which is most appropriately used for income producing properties like multi-family rental units, apartment buildings or commercial spaces. This method uses the income of the property and the market’s capitalization rate to derive at a value.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result