|
Q. What is the purpose of a real
estate
appraisal?
A. Besides estimating current market value,
appraisals can have many purposes. For instance,
a real estate appraisal may provide a value estimate for a specific
date to settle an estate. And an appraisal for income
properties assesses the value in several ways, one of
which is its potential to generate a revenue stream.
As seen on the Home
page, appraisals can also provide a vehicle
for removing PMI insurance, reducing property taxes,
helping to resolve disputes or even as marketing
material when you are selling your your home.
An appraisal is
a professional appraiser's opinion of value. The
preparation of an appraisal involves research into
appropriate market areas; the assembly and analysis of
information pertinent to a property; and the knowledge,
experience and professional judgment of the appraiser.
Wikipedia defines "real
estate appraisal" as: A real estate appraisal is a
service performed by a licensed or certified appraiser,
who develops an opinion of value based upon the
highest and best use of
real property. The highest and best use
is that use which produces the highest value for the
land, as if vacant. This use is based on 4 parts;
physically possible, appropriate, legal, and
economically feasible. Also of importance is the
definition of the type of value being developed and this
must be included in the appraisal, i.e. market value,
condemnation value, quick sale value, etc. For
mortgage valuations of improved residential property,
this value is most often reported on a standardized
form, the Uniform Residential Appraisal Report.
Q. Why do I need a licensed real estate appraiser?
A. Quite simply, because lenders,
attorneys, courts and tax agencies generally require
that a qualified licensed appraiser is utilized to
ensure impartial accuracy and credibility in formulating
an opinion of value. Utilizing licensed appraisers
is also a legal requirement for loans that will be
batched and sold as securities in the secondary
financial market, which is the case with most
residential loans.
In the USA minimum appraisal standards and appraiser
qualifications are the province of The Appraisal
Foundation which is chartered by Congress. Through
one of its boards, The Appraisal Standards Board (ASB),
it periodically publishes the
Uniform Standard of Professional Appraisal Practice
(USPAP). USPAP provides the minimum development
and reporting standards an appraiser/appraisal report
must meet. The Appraisal Foundation is also
responsible for setting the minimum qualifications for
appraiser licensure/certification through its other
board, The Appraisal Qualifications Board (AQB).
The AQB is responsible for establishing the minimum
education, examination, and experience requirements for
licensed/certified appraisers. State licensing was
established in the early 1990s in the wake of the
Savings and Loan "crisis."
Q. Can I order real estate comparables (comps) first to get a
rough idea of value before placing the appraisal order?
A. We can verbally provide a range of
residential values of like-kind properties that have
recently sold in your area. However, we cannot
provide a written estimate or data, as this violates the
USPAP.
Q. Can you guarantee the real estate appraisal will result in the
value I need?
A. No. Please reference the USPAP
appraisal standard regarding sales price and estimated
values: "Your request is acknowledged, but it is
important for you to be aware that we must develop an
appraisal before we can tell you whether the property
will support the value indicated or the sales price
indicated. It is also important for you to be
aware that your statement of that amount with a request
for services does not in our view, establish a
“condition” for our office performing the appraisal.
If you intend it to be a condition for performing the
assignment, we cannot accept the assignment because it
violates our professional ethics.”
Q. What is the turn-around time for a real estate appraisal?
A. A full residential appraisal is usually
completed and delivered within two days, depending
upon the complexity of the property and its availability
for interior inspection.
Q. I need this back right away. Can I place a rush
order?
A. Contact us if you need to expedite an
appraisal. Depending upon the volume of our work, an
additional charge may be involved. Of course, we
can only accomplish a rush order if we have all required
information and full access to the property in a timely
fashion.
Q. How does your real estate appraisal process work?
A. Once the order is placed, we will
acknowledge it and immediately notify you or the lender
if we need additional information. If you are
buying a residence, the lender will usually order the
appraisal and provide us with a copy of the Purchase
Agreement or Contract. If you are paying for the
appraisal, payment is typically required when we perform
the property inspection. Once completed, the
appraisal report can be hand-delivered, mailed or sent
to you or the lender electronically depending on your
wishes.
Q. What will be the fee for my real estate appraisal?
A. That depends on the type and complexity
of the appraisal. Please review our
fee schedule and feel
free to call us if you have any questions.
Q. Can I cancel my real estate appraisal if something comes up?
A. If we have not begun your appraisal
work, then it can be cancelled. Otherwise, a
partial or full fee will be charged.
|
