An appraiser is a professional person who can
tell you what your home is worth. The appraiser will
come to your house and list the number and size of the rooms
and any extras, such as a fireplace, porch, pool, or garage.
The appraiser will compare your home and property to other
homes that have sold recently with similar features. The
appraiser then estimates that your home might sell for approximately
the same amount of money as similar homes. This is
called an "appraisal." In short, an appraisal is the estimated
amount of money your home may sell for.
What is a Real Estate Appraiser?
A real estate appraiser is an impartial, independent third party
who provides an objective report on the estimate of value of
real estate. The appraisal is supported by the collection and
analysis of data.
A real estate appraiser values real property (land, houses,
buildings, etc.), not personal property (cars, jewelry, furniture).
The appraiser determines the physical characteristics of the
property to be appraised and estimates value based upon
three common approaches to value: When Should I Use an Appraiser?
You will likely need the services of a real estate appraiser
whenever an estimate of the value of your real estate is
required. Most commonly, this occurs when you apply for a
real estate loan, either to purchase or refinance your home.
You may also need a real estate appraiser to assist in the
appeal of your property tax assessment, for insurance
purposes, for probate and estate settlements or other reasons.
What's My Property Worth?
It is common to ask the appraiser this question as soon as the
appraiser has inspected the property. The truth is at that time
the appraiser doesn't yet know. The inspection is the first step
of many that the appraiser must complete before a value is
determined.
The appraiser measures the house from the outside to
determine square footage. The appraiser takes notes concerning
the features of your house such as room layout, number of
bedrooms, baths, etc. The appraiser also makes a
A state licensed real estate appraiser meets nationally established
standards for education and experience, and successfully passes a comprehensive
examination. A state licensed appraiser conforms to national ethical and professional
standards, which establish the standards for ethics, competency and confidentiality
governing professional appraisal practices.
A property appraisal is a document that provides an
estimate of a property's market value. Lenders require
appraisals on properties prior to loan approval to ensure
that the mortgage loan amount is not more than the value
of the property. Appraisals are for lenders; home inspections
are for buyers.
The Federal Housing Authority (FHA), which is part of the
U.S. Department of Housing and Urban Development
(HUD), requires lenders to obtain appraisals of properties
securing FHA-insured loans. FHA requires appraisals for
three reasons:
The Importance of an Appraisal
Sales Comparison Market Approach Cost Approach
Income Capitalization Approach
Home Inspections Are Not Appraisals
1) To estimate the market value of the property.
2) To make sure that the property meets FHA minimum
property requirements/standards (health and safety).
3) To make sure that the property is marketable.
The FHA appraisal process will note property deficiencies
that are readily observable and found not in compliance
with HUD's minimum property requirements/standards.
These deficiencies may not be the same as those items
noted in a home inspection report.
Determination of the general condition, appeal and functional
layout of your house. All of these items are taken into consideration
in the appraisal report.
How Long Does an Appraisal Take?
The physical inspection of a typical property usually takes
about twenty to forty-five minutes. Sometimes an inspection
can take longer if the house is difficult to measure or has
some unique features that require additional investigation by
the appraiser.
After the initial inspection of the property the appraiser
spends time examining or analyzing the neighborhood or
area. The purpose of this is to search for other properties that
are similar to the property being appraised that have sold
recently and examine neighborhood influences. When the
fieldwork is finished, the appraiser completes the report at his
office.
What does the Appraiser Need to Know?
To help the appraiser complete the appraisal, you can
provide some information that is helpful. Please tell the
appraiser of any previous
sale on the property within
the last 12 months. Indicate if
there is a pending contract to
purchase on the property.
Does the property have any
right of way or other easements?
Is there structural
damage, or water leakage in
the house? Is the property in
a flood zone? Basically,
inform the appraiser about
any hidden features or
detriments to the property.
How Do I Choose
an Appraiser?
Although federal and state laws usually require that the lender
must hire the appraiser when the appraisal is to be used for a
real estate loan, some
lenders will allow you to
select an
appraiser from their list
of approved appraisers.
For all other appraisals,
you are allowed to
select your own
appraiser.
Licensed real estate
appraisers can be
found on the internet or
by talking to your friends who have previously used an
appraiser. Be sure to interview the appraiser carefully to
determine if he or she is licensed and experienced in appraising
your type of property.
Most licensed appraisers will provide an advance estimate of
the cost to perform the appraisal, and many will commit to a
fixed fee for the appraisal. It is always wise to obtain a written
contract for services which includes a description of what is to
be appraised, the scope of the assignment, the anticipated
delivery date, the fee and terms of payment.
X-ray technology has
shown there are 3
different versions of
the Mona Lisa under
the visible one!
Mrs. Tina Devore
REALTY EXECUTIVES Lafayette
3554 Promenade Parkway, Suite A
Lafayette, IN 47909
Office: 765-807-2607
Cell: 765-418-0919
tinadevore@realtyexecutives.com
www.tinadevorerealty.com
Equal Housing Opportunity If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information
deemed reliable but not guaranteed.
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