Real estate appraisal is a meticulous process requiring a deep understanding of a property’s value. While subjective opinions play a role, the foundation of any credible appraisal rests on objective data. One of the most crucial sources of this data is public records. This blog post will explore the significant role public records play in the appraisal process, highlighting their importance and the specific types of information appraisers glean from them.
New York Real Estate Appraisers utilize public records extensively throughout the appraisal process. These records provide a verifiable and consistent source of information, ensuring the appraisal’s accuracy and defensibility. The information gleaned from these records helps appraisers form a comprehensive picture of the subject property and comparable properties, ultimately supporting their final value estimate.Several key types of public records are essential to the appraisal process:
- Tax Assessor Records: These records are a goldmine of information. They typically include the property’s legal description, ownership history, tax assessment, land size, building size (square footage), and improvements made to the property over time. The assessed value, while not directly used as the appraised value, provides a benchmark and helps identify potential discrepancies or inconsistencies that require further investigation.
- Recorder’s Office Records (County Clerk’s Office): These offices maintain records of deeds, mortgages, liens, and other legal documents related to property ownership and transactions. This information is crucial for understanding the property’s ownership history, any encumbrances (like mortgages or liens), and the price paid in previous sales. This sales history is vital for the appraiser in the comparative market analysis (CMA) portion of the appraisal.
- GIS (Geographic Information System) Data: Many counties and municipalities offer GIS data online, providing access to maps, aerial photography, and other spatial information. This helps appraisers visualize the property’s location, surrounding neighborhood, and access to amenities, contributing significantly to the analysis of its desirability and value.
- Building Permits and Inspections: Records of building permits and inspections offer insight into renovations, additions, or other improvements made to the property. This information is essential for verifying the accuracy of the property’s characteristics and ensuring that any reported improvements are legitimate. It also allows the appraiser to account for the impact of renovations on the property’s overall value.
The careful analysis of these public records allows appraisers to:
- Verify property characteristics: Ensure the accuracy of the property’s physical attributes, such as size, age, and features.
- Identify comparable properties: Locate similar properties that have recently sold to use in the comparative market analysis.
- Determine property ownership: Verify the legal owner of the property and any potential ownership issues.
- Assess property risks: Identify any potential environmental hazards or legal issues that could affect the property’s value.
Conclusion
In conclusion, public records are indispensable tools for real estate appraisers. They provide a verifiable foundation for the appraisal process, ensuring accuracy, consistency, and defensibility. By meticulously reviewing these records, appraisers gain a crucial understanding of the subject property and its market context, ultimately leading to a more reliable and accurate valuation. The reliance on public records underscores the importance of accurate and readily available public information in maintaining the integrity of the real estate market.