What is matched pair analysis in appraisal?

What is matched pair analysis in appraisal?

The process by which the adjustments are derived is commonly known as “matched pair analysis” or “paired sales analysis.” The process consists of the appraiser’s ability to interpret the market and identify the market’s perception of value for a given amenity.

Will Appraisers try to match sale price?

“There are times when the sale price and contract are withheld from us because they fear that the appraiser will use it as the basis for the appraisal, but this is not typical. A good appraiser will only analyze the contract and search for sold/closed market sales to complete their opinion of value.”

What does the appraisal have to match?

Ideally, the appraised value matches the price the buyer has agreed to pay. When a property appraises for less than the purchase price, the transaction can be in jeopardy. You’re a well-qualified buyer, so the lender is willing to give you a loan for 80 percent of the appraised value, or $760,000.

What happens if the appraisal is lower than the offer?

Appraisal is lower than the offer: If the home appraises for less than the agreed-upon sale price, the lender won’t approve the loan. In this situation, buyers and sellers need to come to a mutually beneficial solution that will hold the deal together — more on that later.

What is contributory value appraisal?

The term contributory value refers to the amount by which a single component of an asset influences its total value as a whole. Contributory value is commonly used in the real estate industry to show how a single property feature affects the property’s entire value.

What paired sales?

An appraisal technique used to find the value of a particular feature within a property, such as a two-car garage. If the appraiser can find two recently sold houses that are virtually identical except that one has a two-car garage and one does not, these are called paired sales.

Do appraisals ever come in low?

Low home appraisals are not a common occurrence, but they do happen on occasion. According to Fannie Mae, appraisals come in below contract only about 8% of the time. Most appraisals will come in at the right asking price, but when they do come in low, they are often renegotiated.

What is contributory value?

Contributory value refers to the amount by which a single component of an asset influences its total value. Contributory value is commonly used in the real estate industry to illustrate how just one property feature impacts the value of the entire property.