Assumption: The appraised value of a property will vary, depending upon whether the
appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no vested interest in the outcome of the appraisal and should
render services with independence, objectivity and impartiality
Assumption: Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do
provide a variety of services, including advice for estate planning, dispute resolution,
zoning and tax assessment review and cost/benefit analysis.
Assumption: Market value should approximate replacement cost.
Fact: Market value is based on what a willing buyer likely would pay a willing seller for a
particular property, with neither being under pressure to buy or sell. Replacement cost is
the dollar amount required to reconstruct a property in-kind.
Assumption: Assessed value should equate to market value.
Fact: While most states support the concept that assessed value approximate estimated
market value, this often is not the case. Examples include when interior remodeling has
occurred and the assessor is unaware of the improvements, or when properties in the
vicinity have not been reassessed for an extended period.
Assumption: Appraisers use a formula, such as a specific price per square foot, to
figure out the value of a home.
Fact: Appraisers make a detailed analysis of all factors pertaining to the value of a home
including its location, condition, size, proximity to facilities and recent sale prices of
comparable properties in the subject market area.
Assumption: Because consumers pay for appraisals when applying for loans to
purchase or refinance real estate, they own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases
its interest" in the document. However, consumers may obtain a copy of the appraisal
report from their lender who had ordered the report under the Equal Credit Opportunity
Act.
Assumption: Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do
provide a variety of services, including advice for estate planning, dispute resolution,
zoning and tax assessment review, PMI removal and cost/benefit analysis.
Assumption: In a robust economy - when the sales prices of homes in a given area are
reported to be rising by a particular percentage - the value of individual properties in the
area can be expected to appreciate by that same percentage.
Fact: Value appreciation of a specific property must be determined on an individualized
basis, factoring in data on comparable properties and other relevant considerations. This
is true in good times as well as bad.
Assumption: Consumers need not be concerned with what is in the appraisal document
so long as it satisfies the needs of their lending institution.
Fact: Only if consumers read a copy of their appraisal can they double-check its
accuracy and question the result. Also, it makes a valuable record for future reference,
containing useful and often-revealing information - including the legal and physical
description of the property, square footage measurements, list of comparable properties
in the neighborhood, neighborhood description and a narrative of current real-estate
activity and/or market trends in the vicinity.
Assumption: An Appraisal is the same as a home inspection.
Fact: An Appraisal does not serve the same purpose as an inspection. The Appraiser
forms an opinion of value in the Appraisal process and resulting report. A home inspector
determines the condition of the home and its major components and reports these findings
Assumption: You generally can tell what a property is worth simply by looking at the
outside.
Fact: Property value is determined by a number of factors, including location, condition,
improvements, amenities, and market trends.
appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no vested interest in the outcome of the appraisal and should
render services with independence, objectivity and impartiality
Assumption: Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do
provide a variety of services, including advice for estate planning, dispute resolution,
zoning and tax assessment review and cost/benefit analysis.
Assumption: Market value should approximate replacement cost.
Fact: Market value is based on what a willing buyer likely would pay a willing seller for a
particular property, with neither being under pressure to buy or sell. Replacement cost is
the dollar amount required to reconstruct a property in-kind.
Assumption: Assessed value should equate to market value.
Fact: While most states support the concept that assessed value approximate estimated
market value, this often is not the case. Examples include when interior remodeling has
occurred and the assessor is unaware of the improvements, or when properties in the
vicinity have not been reassessed for an extended period.
Assumption: Appraisers use a formula, such as a specific price per square foot, to
figure out the value of a home.
Fact: Appraisers make a detailed analysis of all factors pertaining to the value of a home
including its location, condition, size, proximity to facilities and recent sale prices of
comparable properties in the subject market area.
Assumption: Because consumers pay for appraisals when applying for loans to
purchase or refinance real estate, they own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases
its interest" in the document. However, consumers may obtain a copy of the appraisal
report from their lender who had ordered the report under the Equal Credit Opportunity
Act.
Assumption: Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do
provide a variety of services, including advice for estate planning, dispute resolution,
zoning and tax assessment review, PMI removal and cost/benefit analysis.
Assumption: In a robust economy - when the sales prices of homes in a given area are
reported to be rising by a particular percentage - the value of individual properties in the
area can be expected to appreciate by that same percentage.
Fact: Value appreciation of a specific property must be determined on an individualized
basis, factoring in data on comparable properties and other relevant considerations. This
is true in good times as well as bad.
Assumption: Consumers need not be concerned with what is in the appraisal document
so long as it satisfies the needs of their lending institution.
Fact: Only if consumers read a copy of their appraisal can they double-check its
accuracy and question the result. Also, it makes a valuable record for future reference,
containing useful and often-revealing information - including the legal and physical
description of the property, square footage measurements, list of comparable properties
in the neighborhood, neighborhood description and a narrative of current real-estate
activity and/or market trends in the vicinity.
Assumption: An Appraisal is the same as a home inspection.
Fact: An Appraisal does not serve the same purpose as an inspection. The Appraiser
forms an opinion of value in the Appraisal process and resulting report. A home inspector
determines the condition of the home and its major components and reports these findings
Assumption: You generally can tell what a property is worth simply by looking at the
outside.
Fact: Property value is determined by a number of factors, including location, condition,
improvements, amenities, and market trends.
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. The role of the appraiser is to provide objective, impartial and
unbiased opinions about the value of real property - providing assistance
to those who own, manage, sell, invest in and/or lend money on the
security of real estate.
At minimum, all states require appraisers to be state licensed or certified in
order to provide appraisals to federally regulated lenders. Appraisers have
fulfilled rigorous educational and experience requirements and must
adhere to strict standards and a code of professional ethics. Qualified
State Certified appraisers bring knowledge, experience, impartiality and
trust to the transaction. In so doing, they help their clients make sound
decisions with regard to real property.
Most appraisals are reported in writing, although in certain circumstances,
an appraiser may provide an oral appraisal. A written appraisal report
generally consists of: a description of the property and its locale; an
analysis of the "highest and best use" of the property; an analysis of sales
of comparable properties "as near the subject property as possible"; and
information regarding current real estate activity and/or market area
trends. The value indicated by recent sales of comparable properties, the
current cost of reproducing or replacing a building, and the value that the
property's net earning power will support are the most important
considerations in the valuation of real property.
In addition to residential or commercial appraisal - and depending upon an
appraiser's designation and qualifications - he or she may be able to
assist with the following:
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. The role of the appraiser is to provide objective, impartial and
unbiased opinions about the value of real property - providing assistance
to those who own, manage, sell, invest in and/or lend money on the
security of real estate.
At minimum, all states require appraisers to be state licensed or certified in
order to provide appraisals to federally regulated lenders. Appraisers have
fulfilled rigorous educational and experience requirements and must
adhere to strict standards and a code of professional ethics. Qualified
State Certified appraisers bring knowledge, experience, impartiality and
trust to the transaction. In so doing, they help their clients make sound
decisions with regard to real property.
Most appraisals are reported in writing, although in certain circumstances,
an appraiser may provide an oral appraisal. A written appraisal report
generally consists of: a description of the property and its locale; an
analysis of the "highest and best use" of the property; an analysis of sales
of comparable properties "as near the subject property as possible"; and
information regarding current real estate activity and/or market area
trends. The value indicated by recent sales of comparable properties, the
current cost of reproducing or replacing a building, and the value that the
property's net earning power will support are the most important
considerations in the valuation of real property.
In addition to residential or commercial appraisal - and depending upon an
appraiser's designation and qualifications - he or she may be able to
assist with the following:
|
The following questions would be appropriate when selecting an appraiser:
 | Are you licensed or certified in the state in which you live? | |
| How long have you been in practice? | |
| What level of experience do you have in this particular market and with this type of | |
| property? | ||
| Are you familiar with property in this neighborhood? | |
| What types of clients have you had (homeowners, estates, lenders, relocation | |
| companies)? |
