If you’re buying or selling Pittsburgh real estate, you know there are a lot of people involved in such a complicated transaction. Many you’re already familiar with. Realtors, mortgage brokers, title companies, closers, notaries and attorneys may all help you buy and sell your home.

An appraisal from a professional appraiser can be an important part of the process of buying real estate in the Pittsburgh area. An appraisal is an unbiased estimate of the market value of real estate.

Appraisers are trained in the methods and theory of determining market value by analyzing such factors and comparable sales in the area, replacement cost, income potential, highest and best use, and other concepts. Qualified Pittsburgh appraisers have access to such data as the area Multiple Listing Service, courthouse and public records and private data sources such as Marshall & Swift to help them determine the market value of southwestern Pennsylvania real estate.

Parts of an appraisal

An appraisal in Pittsburgh starts with an inspection of the property. The appraiser examines the features of the property, measures the square footage, and notes any defects or disrepair. This is an important step because the appraiser verifies that the property is really as the seller describes it, and isn’t hiding anything.

The appraiser might then consult information on local labor rates, material costs and other data to determine how much it would cost to construct a similar property. This is called the cost approach. For an income producing property, like a rental unit, the appraiser might calculate the income potential of the property. This is called the income approach.

In residential real estate, by far the most relevant approach to determining value is called the sales comparison approach. An appraiser uses his knowledge of the local Pittsburgh area market in general and the neighborhood in particular, examines relevant data and talks to other real estate professionals like Realtors. He adjusts any recent sales of comparable properties to account for different features and amenities, trends in the market and other factors to determine the market value of a home.

Results of an appraisal

The result is an appraisal report that reconciles each approach used and expresses a professional opinion of market value. The appraisal helps the mortgage lender make a wise underwriting decision, and gives the buyer peace of mind that he or she is making a sound purchase.