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Torrance CA real estate

Real estate and homes for sale in Torrance CA

You are here: Home / Torrance Home Seller Info – What is an Appraisal and How Does it Work?

Torrance Home Seller Info – What is an Appraisal and How Does it Work?

Home Appraisal Frequently Asked Questions

 

What is an appraisal?
What does an appraiser do?
Why would a person need a home appraisal?
What is the difference between an appraisal and a home inspection?
What is the difference between an Appraisal and a Comparative Market Analysis?
What does the appraisal report contain?
After completing the report, what assurance is there that the value indicated is valid?
How are appraisers certified?
Who do appraisers work for?
Where does an appraiser get the information used to estimate value?
Why do I need a professional appraisal?
How do I get ready for the appraiser?
What is ”Market Value”?
Who Actually Owns the Appraisal Report?
Which home renovations add the most to the price?

What is an appraisal? Back to top

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 Cost Approach – which is what it would cost to replace the improvements, less physical deterioration and other factors, plus the land value. There is 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. 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. For a more detailed description of the appraisal process click here: What is an appraisal?

What does an appraiser do? Back to top

An appraiser provides a professional, unbiased opinion of market value, to be used in making real estate decisions. Appraisers present their formal analysis in appraisal reports.

Why would a person need a home appraisal? Back to top

There are many reasons to obtain an appraisal with the most common reason being 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.

For more details on when you might need an appraisal click here: When to get an Appraisal

What is the difference between an appraisal and a home inspection? Back to top
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.

 

What does the appraisal report contain? Back to top

Each report must reflect a credible estimate of value and must identify the following:

  • The client and other intended users.
  • The intended use of the report.
  • The purpose of the assignment.
  • The type of value reported and the definition of the value reported.
  • The effective date of the appraiser’s opinions and conclusions.
  • Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items.
  • All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
  • Division of interest, such as fractional interest, physical segment and partial holding.
  • The scope of work used to complete the assignment.

After completing the report, what assurance is there that the value indicated is valid? Back to top

In communicating an appraisal report, each appraiser must ensure the following:

  • That the information analysis utilized in the appraisal was appropriate.
  • That significant errors of omission or commission were not committed individually
    or collectively.
  • That appraisal services were not rendered in a careless or negligent manner.
  • That a credible, supportable appraisal report was communicated.

Most states require that real estate appraisers are state licensed or certified. The state licensed or certified appraiser is trained to render an unbiased opinion based upon extensive education and experience requirements. To become licensed or certified, appraisers must fulfill rigorous education and experience requirements. In addition, appraisers must abide by a strict industry code of ethics and comply with national standards of practice for real estate appraisal. The rules for developing an appraisal and reporting its results
are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).

How are appraisers certified? Back to top

Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. However, licensing and certification is most often associated with many hours of coursework, tests and practical experience. Once an appraiser is licensed, he or she is required to take continuing education courses in order to keep the license current.

Who do appraisers work for? Back to top
Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions.

Where does an appraiser get the information used to estimate value? Back to top
Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.

General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, such as a la mode’s InterFlood product. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.

Why do I need a professional appraisal? Back to top

Anytime the value of your home or other real property is being used to make a significant financial decision, an appraisal helps. If you’re selling your home, an appraisal helps you set the most appropriate value. If you’re buying, it makes sure you don’t overpay. If you’re engaged in an estate settlement or divorce, it ensures that property is divided fairly. A home is often the single, largest financial asset anybody owns. Knowing its true value means you can the right financial decisions.

How do I get ready for the appraiser?
Back to top

The first step in most appraisals is the home inspection. During this process, the appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house. Trim any bushes and move any items that would make it difficult to measure the structure. On the inside, make sure that the appraiser can easily access items like furnaces and water heaters.
The following Items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:

  • A survey of the house and property.
  • A deed or title report showing the legal description.
  • A recent tax bill.
  • A list of personal property to be sold with the house if applicable.
  • A copy of the original plans.

What is ”Market Value?” Back to top

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.

Who Actually Owns the Appraisal Report? Back to top

In most real estate transactions, the appraisal is ordered by the lender. While the home buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The home buyer is entitled to a copy of the report – it’s usually included with all of the other closing documents – but is not entitled to use the report for any other purpose without permission from the lender.

The exception to this rule is when a home owner engages an appraiser directly. In these cases, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stipulated otherwise, the home owner can use the appraisal for any purpose.

Which home renovations add the most to the price? Back to top

The answer to this is different depending upon the location of the home. Different markets value amenities differently. In the South Bay that is true as well. Additions or renovations that enhance the view greatly add to value.

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%.

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Torrance Real Estate Update

Your Torrance Real Estate Speicalist

Keith Kyle

Realtor, Top Producing Agent Since 2007 310.251.2344 (cell/text) Keith.Kyle@VistaSIR.com DRE# 01718725

Torrance Real Estate and Homes

Newest Torrance Listings

  • $1,145,000 1435 W 227th Street
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  • $1,950,000 1573 Torrance Boulevard
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  • $614,999 21312 Payne Ave
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  • $490,000 4033 W 182nd Street #C
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  • $919,990 21233 S Normandie Avenue
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  • $879,000 1536 W 207th Street
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  • $512,500 22605 Nadine Circle #200
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  • $525,000 911 Cota Avenue #2
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  • $799,900 3601 W 182nd Street
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  • $895,000 1605 W 208th Street
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1435 W 227th Street
Torrance, CA
Photo of 1435 W 227th Street, Torrance, CA 90501 (MLS # SB18212886)
$1,145,000
Lot Size
7,205 sqft

Home Size
3,850 sqft

Beds
N/A

Baths
N/A

1573 Torrance Boulevard
Torrance, CA
Photo of 1573 Torrance Boulevard, Torrance, CA 90501 (MLS # SB18212914)
$1,950,000
Lot Size
7,523 sqft

Home Size
6,531 sqft

Beds
N/A

Baths
N/A

21312 Payne Ave
Torrance, CA
Photo of 21312 Payne Ave, Torrance, CA 90502 (MLS # SB19002972)
$614,999
Lot Size
5,315 sqft

Home Size
1,295 sqft

Beds
3 Beds

Baths
2 Baths

5309 Paseo De Pablo
Torrance, CA
Photo of 5309 Paseo De Pablo, Torrance, CA 90505 (MLS # SB18290452)
$2,149,500
Lot Size
8,848 sqft

Home Size
3,003 sqft

Beds
5 Beds

Baths
3 Baths

4033 W 182nd Street #C
Torrance, CA
Photo of 4033 W 182nd Street #C, Torrance, CA 90504 (MLS # SB18190619)
$490,000
Lot Size
9,558 sqft

Home Size
1,652 sqft

Beds
2 Beds

Baths
2 Baths

21233 S Normandie Avenue
Torrance, CA
Photo of 21233 S Normandie Avenue, Torrance, CA 90501 (MLS # SW19086341)
$919,990
Lot Size
6,277 sqft

Home Size
1,904 sqft

Beds
4 Beds

Baths
3 Baths

1525 W 224th Street
Torrance, CA
Photo of 1525 W 224th Street, Torrance, CA 90501 (MLS # SB19087117)
$1,095,000
Lot Size
7,201 sqft

Home Size
4,575 sqft

Beds
N/A

Baths
N/A

802 Cota Avenue
Torrance, CA
Photo of 802 Cota Avenue, Torrance, CA 90501 (MLS # PV19130095)
$1,450,000
Lot Size
6,822 sqft

Home Size
2,592 sqft

Beds
N/A

Baths
N/A

1536 W 207th Street
Torrance, CA
Photo of 1536 W 207th Street, Torrance, CA 90501 (MLS # OC19131449)
$879,000
Lot Size
7,502 sqft

Home Size
1 sqft

Beds
N/A

Baths
N/A

22605 Nadine Circle #200
Torrance, CA
Photo of 22605 Nadine Circle #200, Torrance, CA 90505 (MLS # SB19132807)
$512,500
Lot Size
11.13 ac

Home Size
967 sqft

Beds
2 Beds

Baths
2 Baths

911 Cota Avenue #2
Torrance, CA
Photo of 911 Cota Avenue #2, Torrance, CA 90501 (MLS # PW19134808)
$525,000
Lot Size
11,200 sqft

Home Size
1,159 sqft

Beds
2 Beds

Baths
3 Baths

5505 Riviera Way
Torrance, CA
Photo of 5505 Riviera Way, Torrance, CA 90505 (MLS # PV19136767)
$2,299,000
Lot Size
5,986 sqft

Home Size
3,440 sqft

Beds
4 Beds

Baths
4 Baths

21301 Marjorie Avenue
Torrance, CA
Photo of 21301 Marjorie Avenue, Torrance, CA 90503 (MLS # IV19149116)
$980,000
Lot Size
5,402 sqft

Home Size
1,812 sqft

Beds
3 Beds

Baths
3 Baths

3601 W 182nd Street
Torrance, CA
Photo of 3601 W 182nd Street, Torrance, CA 90504 (MLS # SB19156298)
$799,900
Lot Size
5,284 sqft

Home Size
1,500 sqft

Beds
3 Beds

Baths
2 Baths

1605 W 208th Street
Torrance, CA
Photo of 1605 W 208th Street, Torrance, CA 90501 (MLS # SB19174881)
$895,000
Lot Size
7,684 sqft

Home Size
3,568 sqft

Beds
N/A

Baths
N/A

  • 1435 W 227th Street
    Torrance, CA
    Photo of 1435 W 227th Street, Torrance, CA 90501 (MLS # SB18212886)
    $1,145,000
    Lot Size
    7,205 sqft

    Home Size
    3,850 sqft

    Beds
    N/A

    Baths
    N/A

  • 1573 Torrance Boulevard
    Torrance, CA
    Photo of 1573 Torrance Boulevard, Torrance, CA 90501 (MLS # SB18212914)
    $1,950,000
    Lot Size
    7,523 sqft

    Home Size
    6,531 sqft

    Beds
    N/A

    Baths
    N/A

  • 21312 Payne Ave
    Torrance, CA
    Photo of 21312 Payne Ave, Torrance, CA 90502 (MLS # SB19002972)
    $614,999
    Lot Size
    5,315 sqft

    Home Size
    1,295 sqft

    Beds
    3 Beds

    Baths
    2 Baths

  • 5309 Paseo De Pablo
    Torrance, CA
    Photo of 5309 Paseo De Pablo, Torrance, CA 90505 (MLS # SB18290452)
    $2,149,500
    Lot Size
    8,848 sqft

    Home Size
    3,003 sqft

    Beds
    5 Beds

    Baths
    3 Baths

  • 4033 W 182nd Street #C
    Torrance, CA
    Photo of 4033 W 182nd Street #C, Torrance, CA 90504 (MLS # SB18190619)
    $490,000
    Lot Size
    9,558 sqft

    Home Size
    1,652 sqft

    Beds
    2 Beds

    Baths
    2 Baths

  • 21233 S Normandie Avenue
    Torrance, CA
    Photo of 21233 S Normandie Avenue, Torrance, CA 90501 (MLS # SW19086341)
    $919,990
    Lot Size
    6,277 sqft

    Home Size
    1,904 sqft

    Beds
    4 Beds

    Baths
    3 Baths

  • 1525 W 224th Street
    Torrance, CA
    Photo of 1525 W 224th Street, Torrance, CA 90501 (MLS # SB19087117)
    $1,095,000
    Lot Size
    7,201 sqft

    Home Size
    4,575 sqft

    Beds
    N/A

    Baths
    N/A

  • 802 Cota Avenue
    Torrance, CA
    Photo of 802 Cota Avenue, Torrance, CA 90501 (MLS # PV19130095)
    $1,450,000
    Lot Size
    6,822 sqft

    Home Size
    2,592 sqft

    Beds
    N/A

    Baths
    N/A

  • 1536 W 207th Street
    Torrance, CA
    Photo of 1536 W 207th Street, Torrance, CA 90501 (MLS # OC19131449)
    $879,000
    Lot Size
    7,502 sqft

    Home Size
    1 sqft

    Beds
    N/A

    Baths
    N/A

  • 22605 Nadine Circle #200
    Torrance, CA
    Photo of 22605 Nadine Circle #200, Torrance, CA 90505 (MLS # SB19132807)
    $512,500
    Lot Size
    11.13 ac

    Home Size
    967 sqft

    Beds
    2 Beds

    Baths
    2 Baths

  • 911 Cota Avenue #2
    Torrance, CA
    Photo of 911 Cota Avenue #2, Torrance, CA 90501 (MLS # PW19134808)
    $525,000
    Lot Size
    11,200 sqft

    Home Size
    1,159 sqft

    Beds
    2 Beds

    Baths
    3 Baths

  • 5505 Riviera Way
    Torrance, CA
    Photo of 5505 Riviera Way, Torrance, CA 90505 (MLS # PV19136767)
    $2,299,000
    Lot Size
    5,986 sqft

    Home Size
    3,440 sqft

    Beds
    4 Beds

    Baths
    4 Baths

  • 21301 Marjorie Avenue
    Torrance, CA
    Photo of 21301 Marjorie Avenue, Torrance, CA 90503 (MLS # IV19149116)
    $980,000
    Lot Size
    5,402 sqft

    Home Size
    1,812 sqft

    Beds
    3 Beds

    Baths
    3 Baths

  • 3601 W 182nd Street
    Torrance, CA
    Photo of 3601 W 182nd Street, Torrance, CA 90504 (MLS # SB19156298)
    $799,900
    Lot Size
    5,284 sqft

    Home Size
    1,500 sqft

    Beds
    3 Beds

    Baths
    2 Baths

  • 1605 W 208th Street
    Torrance, CA
    Photo of 1605 W 208th Street, Torrance, CA 90501 (MLS # SB19174881)
    $895,000
    Lot Size
    7,684 sqft

    Home Size
    3,568 sqft

    Beds
    N/A

    Baths
    N/A

Previous Next
 

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Pages

  • 1031 Tax Deferred Exchanges In Torrance CA
  • 18039 Amie Ave – Immaculate 4 Bedroom Detached Townhome **Sold**
  • 340 Via Colusa – Luxury Home Just Sold in the Hollywood Riviera
  • 4171 w 172nd Street – Torrance Home for Sale
  • About Us Your Torrance Realtors
  • Client Testimonials for Torrance Realtor Keith Kyle
  • Contact Us
  • Explore The Cities and Neighborhoods Around Torrance CA
  • February Home Sales in Torrance and the South Bay
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  • Hollywood Riviera in Torrance and Redondo
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  • How We Sell Your Torrance Home – Maximum Internet Exposure
  • Information for Torrance Home Buyers and Sellers
  • Just Sold – 1637 Armour Lane in Redondo Beach
  • Just Sold – 2160 Plaza Del Amo 3 Bedroom Townhome for Sale
  • Just Sold – Beautiful and Classic California Craftsman in Old Torrance
  • Just Sold – Detached Townhome in Old Torrance at 1310 Portola
  • Just Sold in North Torrance
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  • North Torrance Real Estate
  • November 2016 Torrance Home Sales
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  • Prop 58: Parent and Child Transfers & Prop 193: Grandparent and Grandchild Transfers
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  • Selling Your Home in Torrance? Helpful Information
  • South Bay Real Estate
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  • Thank You
  • The Gated Communities of Plaza Del Amo Torrance
  • Torrance CA Home Buyer and Seller Tips and Information
  • Torrance CA Neighborhoods
    • County Strip and Harbor Gateway Real Estate in Torrance CA
    • Old Torrance Real Estate and Homes for Sale
  • Torrance Home Seller Info – What is an Appraisal and How Does it Work?
  • Torrance Listing Specialists – How we effectively market and sell homes
  • Torrance Real Estate Articles
  • Torrance Real Estate Market Trends
  • Torrance Realtor Keith Kyle Home Sales
  • Townhomes for Sale in Torrance CA
  • Understanding Closing Costs in Torrance CA Real Estate
  • Walteria Torrance and Victoria Knolls Real Estate
  • West Torrance Real Estate
  • What is my Torrance Home Worth?
  • What is My Torrance Home Worth? Instant Home Valuation

Torrance Real Estate

  • 1031 Tax Deferred Exchanges In Torrance CA
  • 18039 Amie Ave – Immaculate 4 Bedroom Detached Townhome **Sold**
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