Sonic Realty

Demystifying Realty Appraisals: Understanding the Valuation Process

Realty appraisals play a crucial role in the real estate industry. They objectively assess a property’s value. Understanding the appraisal process is essential for making informed decisions about buying, selling, refinancing, or investing in real estate.


At the heart of a realty appraisal is a licensed appraiser, whose role is to provide an unbiased estimate of a property’s market value. This estimate is based on a comprehensive evaluation of various factors, including the property’s location, size, condition, features, comparable sales in the area, and current market trends. It’s this meticulous process that ensures a fair and accurate valuation, building trust in the appraisal process.


The appraisal process is a systematic journey that begins with an inspection of the property. During this stage, the appraiser evaluates the property’s condition, layout, amenities, and any unique characteristics that may affect its value. This is followed by a research phase, where the appraiser identifies comparable properties (comps) that have recently sold in the area. These comps serve as benchmarks to assess the subject property’s value, leading to a comprehensive and well-informed valuation.


Once the research and analysis are complete, the appraiser prepares a report detailing their findings and conclusions. This report includes the property’s appraised value, a description of the property, information on comps, and any relevant market data or factors considered in the valuation.


Realty appraisals are used for various purposes in real estate transactions. For buyers, an appraisal helps ensure that they are not overpaying for a property and assures lenders that the property is adequate collateral for the loan. For sellers, an appraisal helps set a realistic listing price and validates the property’s value for potential buyers.


In addition to transactions, realty appraisals are used for property tax assessments, estate planning, divorce settlements, and other legal or financial purposes. Realty appraisals play a critical role in maintaining the integrity and efficiency of the real estate market by providing an objective and unbiased assessment of a property’s value.

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DJ Peterson

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Affiliated Business Arrangement Disclosure Statement
This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement ServiceCharge or Range of Charges
Sonic Realty LLC1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement ServiceCharge or Range of Charges
Appraisal Fee$0-$800
Credit Report Fee$63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.
ACKNOWLEDGMENT
I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.