Appraisal FAQ's

What should I do to get ready for an appraisal? What does an appraiser do? Why would a person need a commercial or residential appraisal? What is the difference between an appraisl and a home inspection? What's the difference between an Appraisal & A Brokers Opinion of Value? What does the appraisal report contain? How are appraisers certified?

What should I do to get ready for an appraisal? "You never get a second chance to make a first impression", Make your home as presentable as possible. Simple things like, mowing the lawn, washing the dishes, making the bed and putting things in their place, go a long way towards the general appearance of your home. Make sure that all the rooms in the home are accesible, if you or someone in your family is a late sleeper, schedule an appointment a little later in the day. Restrain your pets, the appraiser is not familiar with you pet and your pet is not familiar with the appraiser. Have some basic information available such as, your utility suppliers (Water, Sewer, Gas, Electric), and your account number on your tax bill. Back to Top

What does an appraiser do? An appraiser provides a professional, unbiased OPINION of market value, to be used in making real estate decisions. Appraisers present their formal analysis in appraisal reports. Back to Top

Why would a person need a commercial or residential appraisal? There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include: * To obtain a loan * To lower your tax burden * To establish the replacement cost of insurance * To contest high property taxes * To settle an estate * To provide a negotiating tool when purchasing real estate * To determine a reasonable price when selling real estate * To protect your rights in a condemnation case * Because a government agency such as the IRS requires it * If you are involved in a lawsuit Back to Top

What is the difference between an appraisl and a home inspection? The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third party evaluation of the accessible structure and mechanical systems of a house, from the foundation to the roof. The standard home inspector's report will include a valuation of the condition of heating and cooling system, interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, celings, floors, windows and doors; the foundation, basement, and visible structure. All of which requires a person to be licensed as a home inspector by the state. Back to Top

What's the difference between an Appraisal & A Brokers Opinion of Value? The brokers opinion of value(BOP) relies on vague market trends, that are renderd by real estate brokers. The appraisal relies on specific, verifiable comparable sales. In addition, the appraisal looks at other factors like condition, location and contruction costs. A brokers opinion of value (BOP) delivers a "ball park figure." An appraisal delivers a defensible and carefully documented opinion of value. An appraisal is created by a licenced, certified professional who has made a career out of valuing properties. Further, the appraiser is an independent voice, with no vested interest in the value of a home, unlike a real estate agent, whose income is tied to the value of the home. Back to Top

What does the appraisal report contain? Each report must reflect a credible estimate of value and must identify the following: * The client and other intended users * The intended use of the report * The purpose of the assignment * The type of value reported and the definition of the value reported * The scope of work used to complete the assignment * The effective date of the appraiser's opinion and conclusions * Relavent property characteristics including, locational, physical, legal and economic attributes * All known easements, restrictions, encumberances, leases, reservations, covenants, contracts, declarations, special assesments, ordinances and other items of similar nature * Division of interest, such as fractional, physical segment and partial holding Back to Top

How are appraisers certified? Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. However, licensing and certification is most often associated with many hours of coursework, tests and practical experience. Once an appraiser is licensed, he/she is required to take continuing education courses in order to keep the license current. Back to Top