Narrative Appraisal Report
NARRATIVE APPRAISAL REPORT
PREPARED BY: [YOUR NAME]
I. Introduction
This narrative appraisal report provides a detailed analysis of the subject property located at Corpus Christi, TX 78401. The purpose of this report is to establish the current market value of the property by evaluating various factors that influence value. This includes the property's condition, location, and market trends.
1. Purpose of the Appraisal
The primary objective of this appraisal is to determine an accurate estimate of the market value of the subject property for potential sale, refinancing, or tax assessment purposes. This involves a thorough examination of all pertinent data related to the property and its surrounding environment.
2. Scope of Work
The scope of this appraisal includes an on-site inspection, review of comparable sales, and analysis of local market conditions. The inspection was conducted on September 15, 2023, and the comparable sales were selected from the last six months to ensure relevance and accuracy in the appraisal.
II. Property Description
1. Location
The subject property is located in a suburban neighborhood with close proximity to schools, shopping centers, and public transportation. The area is predominantly residential, with a mix of single-family homes and small apartment complexes.
2. Site Description
The property is situated on a 0.25-acre lot with a rectangular shape and level topography. The land is fully developed with utilities and infrastructures such as water, electricity, and sewage.
3. Improvements
The property is improved with a two-story single-family residence constructed in 2005. The structural details are as follows:
|
Feature |
Description |
|---|---|
|
Building Size |
2,500 sq ft |
|
Bedrooms |
4 |
|
Bathrooms |
3 |
|
Garage |
2-car attached |
4. Condition
The property is in good condition with no significant repairs required. Regular maintenance has been conducted, and no major issues have been reported. The interior shows minor wear and tear typical for a property of its age.
III. Market Analysis
1. Neighborhood Overview
The neighborhood is characterized by stable economic conditions and a steady real estate market. Over the past year, property values have appreciated by approximately 5% due to the high demand for housing and limited inventory.
2. Comparable Sales
To estimate the market value of the subject property, three comparable sales were analyzed:
-
Property A: Sold for $350,000, located 0.5 miles from the subject property.
-
Property B: Sold for $370,000, similar size and age, located in adjacent neighborhood.
-
Property C: Sold for $360,000, slightly larger, located within 1 mile.
3. Market Trends
Current market trends suggest a moderate increase in property values with a rise in buyer activity. The limited supply and strong demand are driving prices up but are balanced by the region's economic stability, preventing rapid appreciation.
IV. Valuation Approach
1. Sales Comparison Approach
The sales comparison approach was primarily used for this appraisal. This method involves comparing the subject property with similar properties that have been sold recently. Adjustments were made for differences in size, condition, and location.
2. Income Approach
Given the property’s nature as a single-family home, the income approach holds less relevance. However, surrounding rental income was considered to ensure comprehensiveness. Rental properties in the area average $1,800 per month for similar homes.
3. Cost Approach
The cost approach synthesized the replacement cost new minus depreciation estimate. Local building costs were evaluated, and a depreciation factor was applied to reach a current value estimation.
V. Conclusion
1. Final Value Estimate
Based on the data collected and analyzed, the final estimate of the market value for the subject property as of the effective date of September 15, 2050, is $365,000. This conclusion is well-supported by market evidence and reflects current conditions in the local real estate market.
2. Statement of Assumptions and Limiting Conditions
This appraisal report assumes that the subject property title is free and clear of any encroachments, easements, or restrictions that could negatively impact value. The appraisal was performed in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).
The narrative appraisal report provides a comprehensive analysis of the subject property, considering all relevant data and reflecting an unbiased estimate of its current market value.
