What is an appraisal?
An appraisal is an unbiased estimate of a defined value by an individual who is trained in the fields of research and analysis, knowledgeable of the particular property being appraised, and who adheres to an accepted and professed standard of practice. An appraisal report is a legal document that is created during the appraisal that describes and values a property.
What do appraisers do?
An appraiser’s job is to determine the current standing value of a property. An appraiser will conduct a room-by-room walkthrough of a property to determine interior condition. Walk the length of the outside of the property in the determination of exterior condition. Analyze and evaluate the amenities such as swimming pools and additional fixtures. Make a note of any health or safety code issues, and record the layout of the property.
What differentiates appraisals from home inspections?
An appraiser is not a home inspector, nor do they do a complete home inspection. A home inspection is an evaluation performed by a third-party of the structure and mechanical systems in a house. Home inspections are concerned with the functionality and safety of a property from the roofing to the foundation.
Why do I need a professional appraisal?
There can be a variety of reasons to obtain an appraisal. The most common reason an individual seeks an appraisal is to get a mortgage loan. Other reasons for an appraisal include:
- Obtaining loan financing
- Lessening of tax burdens
- Establishment of replacement value for insurance purposes
- Contesting property tax rates
- Settlement of an estate
- Determining reasonable pricing when buying or selling real estate
- Government requirements
- Stipulations regarding legal issues and lawsuits.
Where does an appraiser gather the information used in determining value?
The collection of data is one of the primary roles of an appraiser. Data that is obtained can consist of information that comes directly from a property like location, condition, amenities, and size. Additional data can consist of information concerning data that is available on the MLS. This information can regard recently sold properties that can be used as a comparable. Tax records, public documentation, flood zone data, and the utilization of past appraisal experience are all drawn upon to create an appraisal.
How long does an appraisal take?
One to two hours is the average time taken for an appraisal of the property. The amount of time spent on an appraisal can vary depending on the report, size, and other factors concerning the property being appraised.
What are the benefits of an appraisal?
An appraisal is an investment of your time money and effort to determine a valuation of your property. It can be important to know the value of your property for a variety of reasons, being used even in obtaining financing approval.