A GUIDE TO YOUR APPRAISAL
How is a real estate property appraised?
An appraiser looks at the home, researches comparable sales and explains how the evidence supports an opinion of value. You receive a written report, with the reasoning behind the number.
2 NJ-37, Toms River, NJ 08753
The Appraising Group Toms River
Published May 17, 2025 · Revised October 30, 2026
FROM INSPECTION TO REPORT
Five steps behind the value.
If you are arranging an appraisal for a family home or an estate, knowing the process can make the next conversation easier.
Residential appraisals →Look closely at the property
The appraiser examines the home's size, layout, condition, improvements and distinctive features. Recent renovations, needed repairs and the condition of systems such as the roof, foundation and heating or cooling are part of that picture.
Research the market
Recent sales of similar properties—often called comparable sales, or “comps”—provide evidence. The research also considers the neighborhood, nearby amenities and market conditions.
Choose suitable valuation methods
The property type and available data help determine which approaches apply. Sales comparison, cost and income approaches answer the value question in different ways, explained below.
Account for the differences
Two homes are rarely identical. The appraiser adjusts for differences such as bedrooms, lot size, upgrades and condition. A sale's similarity and proximity can affect how much weight it receives.
Bring the findings into a report
The appraiser weighs the evidence and conclusions from the applicable approaches. The report sets out the estimated value, supporting data, market analysis and reasons for the final opinion.
A HYPOTHETICAL TOMS RIVER EXAMPLE
A bungalow and a rebuilt home may be neighbors. They are not the same comparison.
Imagine you are arranging an appraisal for a beach-area bungalow. A larger, newly rebuilt home nearby has sold. Its location makes that sale worth examining, but does not make its price the value of your bungalow.
Start with the bungalow
Record its size, layout, condition and improvements. What is actually there matters more than what a neighboring house offers.
Look for similar sales
Sales of other bungalows in a similar setting help make the comparison meaningful. Differences in size, condition and improvements still need to be considered.
Show why the evidence fits
The report explains the comparisons and adjustments. A nearby sale is evidence to weigh, rather than a price to copy.
This is an illustrative scenario, not a client assignment or an actual sale. No property value or adjustment amount is implied.
HOW THE EVIDENCE IS USED
Different properties call for different approaches.
Sales comparison
Compares the home with similar properties that recently sold, allowing for differences in features and condition. This is used for most residential properties.
Cost approach
Considers the cost to rebuild, subtracts depreciation, then adds the land value. It can be useful for newer or unusual properties.
Income approach
Examines a property's ability to generate income, using net operating income and capitalization rates. It is relevant to rental and investment properties.
What about price per square foot? It can provide a quick estimate that supplements the analysis. Size is one part of a property's value; condition, location and comparable sales also matter.
THE DETAILS THAT MATTER
More than square footage.
The appraisal considers the property and its market together. Relevant details include:
- Location and neighborhood
- Size, layout, condition and age
- Improvements, amenities and upgrades
- Comparable sales and market trends
- Potential income for rental properties
- External factors such as zoning, hazards and taxes