Residential Real Estate Appraisals in Sacramento

What to Expect During the Appraisal

A typical residential appraisal begins with a scheduled site visit, usually lasting about one hour depending on the size and complexity of the property. During the inspection, we measure the home, note its condition, features, outbuildings, and any updates or renovations. We take exterior and interior photographs as part of the report documentation, and they are not public. Appraisal reports are confidential and for the client, whether it's a lender, homeowner, or investor. We typically ask about the age and condition of the HVAC (heating and air conditioning), hot water heater, roof, etc. After the visit, we review comparable sales and listings in the neighborhood, noting amenities and detriments such as nearby parks or commercial uses.

After the site visit, the report itself typically takes a few business days to complete, depending on the purpose of the appraisal and current workload. The research, analysis, conclusions, and report writing take longer than the inspection. You'll receive a detailed report documenting our methodology, the comparable properties considered, and a clearly supported value conclusion.

Purchase and Refinance Appraisals

The purpose of the appraisal is to evaluate the collateral for the loan. Lending decisions or underwriting can be described as the “four Cs.”

1. Credit: the borrower's FICO or VantageScore from the reporting agencies. Approval criteria vary by loan program, such as Conventional FNMA, FHA, VA, and jumbo loans.
2. Capacity: the borrower's ability to repay from income, usually measured with ratios like DTI (Debt-to-Income).
3. Capital: or Cash. The borrower's own financial reserves and equity, including the down payment, savings, and assets that could cover payments if income is interrupted.
4. Collateral: the asset securing the loan, which the lender can recover if the borrower defaults. In mortgage lending, this is where the appraisal comes in, since it establishes the property's value and supports the LTV (Loan-to-Value) ratio.

Most lenders outsource the appraisal to an AMC (appraisal management company). The AMC then sends the assignment out for bids. A few lenders own an AMC as a subsidiary. The appraiser doesn't know the appraisal fee charged to the borrower/owner, and the AMC keeps a portion of the fee. Lenders and AMCs will not allow the appraiser's fee to be stated in the appraisal report, AKA an invoice.

We have worked with a variety of lenders and AMCs since the Great Recession of 2007 and in the 1990s. We work directly with homeowners, loan officers, and mortgage brokers throughout the Sacramento Region and Yolo County to deliver refinance appraisals that meet lender requirements and timelines.

Residential Valuations

A formal appraisal is essential for calculating a realistic listing price. Many sellers who have consulted with AVK Appraisal Services before putting their homes on the market have benefitted when selling real estate in Sacramento.

Appraisal for Home Buyers

Independent appraisals also give buyers a chance to verify whether the list price is reasonable. The lender will choose their appraiser for the loan and collateral valuation. The buyer is not the client of that appraiser. In some cases the buyer may want the additional security of their own appraisal; then they are the client.

Residential Appraisers for Tax Appeal

AVK Appraisal Services provides residential home appraisals for the purpose of determining accurate property taxes. Since many states base property taxes on the market value of your home; if your home in Sacramento has decreased in value, you may be eligible for a decrease in property tax based on the findings of an accredited appraiser.

Types of Residential Appraisals

• Single family homes
• Semi-detached homes
• Mobile homes
• Duplex
• Triplex
• Fourplex
• Town houses
• Vacant land
• Condominiums

AVK Appraisal Services understands how important an objective and detailed appraisal can be to facilitate your personal or business real estate transactions and completes reports in a timely and efficient manner. Call us for a confidential and free consultation.