last sold for $180,000 in 1998; it was appraised for re fin ancing in 2015 at $275,000. In 2017, Re dfin ’s calculator valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 sq . ft .) in a four-block area of “Grand Old Ladies” at $158,000. Th e apparent reason is that the six “comps” (comparable recent sales) include only two homes in this desirable neighborhood (over $300,000), while four others are outside this small neighborhood, although close, and sold for $150,000 to $199,000. Information that would be known to real estate professionals in the area is missing . Th ese tools are worthwhile for obtaining “comps” of area sales; however, they aren’t accurate enough to use in arriving at a listing price. PROFESSIONAL APPRAISAL Real estate appraisal (also known as “property valuation”) is the process of developing an opinion of value for real property . Th is is the “market value,” or what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions almost always require appraisals because they occur infrequently on a given property and every property i s diff erent or unique in features and characteristics. An appraisal helps in various decision poin ts. Th e seller can use the appraisal as a basis for pricing . Th e buyer can use it as the basis for an o ff er. Lenders use appraisals to know how much money to credit to their borrowers. Th e most important factors in a house appraisal are: • dwelling type (e.g., one-story, two-story, split-level, factory- built) • features (including design); materials used and the type of structure present and how they were built • improvements made
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