It makes more sense to add on to the smallest house than to further improve the largest one in the area. People traditionally turn to either an appraisal or a comparative market analysis when determining a property's value. The results can be presented to the client in various ways ranging from a brief summary on a preprinted form, to a more thorough narrative appraisal report showing all factual materials, techniques and appraisal methods used in setting forth the appraisers conclusion of value, or as a letter of opinion simply giving only the appraiser's conclusion of value, with no supporting data, Stapleton, Moran and Williams write. Appraisers consider numerous factors such as square footage, construction quality, design, floor plan, amenities and energy efficiency. Other issues taken into account are neighborhood quality and a property's proximity to transportation, shopping and schools.
Appraisers also look at lot size, topography, view and landscaping.
Comparative market analysis is an informal estimate of market value performed by a real estate agent or broker. Many agents offer a free analysis or property profile in hopes of acquiring a new client. People also can do their own cost comparison using public records maintained by their county recorders' and assessors' offices.