Frequently Asked Questions
What is an appraiser?
An appraiser identifies and provides a value for various types of property. A real estate appraiser specifically provides the market value of a property to be used in real estate transactions.
What is the importance of a professional real estate appraisal?
The job of the professional appraiser is to determine property values by gathering, analyzing, and applying information. It is important to have a professional appraiser to ensure that there is an impartial third party in the lending process, protecting real estate buyers from overpaying for property, as well as protecting lenders from over-lending to buyers.
What are appraiser qualifications?
Most states require all real estate appraisers to be state licensed, state certified, or have fulfilled rigorous education and experience requirements. Real estate appraisers must adhere to strict industry standards and a professional code of ethics formulated by the Appraisal Foundation. To see the specific requirements for any state, click here.
How long does an appraisal take and how much does it cost?
The time for a physical appraisal to be completed ranges depending upon the size and complexity involved. A simple drive-by appraisal takes the shortest amount of time, while to an entire walk-through will take the longest. The price range for an appraisal is between $450 to $1300, depending the property type.
Where does an appraiser get the information needed to complete an appraisal?
The appraiser gets his or her information from a wide variety of sources, including the local Multiple Listing Service, local tax assessor’s records, local real estate professionals, county courthouse records, private public record data vendors, interviews with sellers and buyers, appraisal data co-operatives, his or her own personal knowledge, or office files from previous appraisals. The quality, reliability, and credibility of each piece of information is considered by the appraiser.
What does the appraiser look for?
Typically, an appraiser needs to document the condition of both the interior and exterior of the property. The appraiser will document the layout, all features, the degree of modernization, any updates, and the overall quality of construction. This information will help to assist the appraiser throughout the valuation and comparison process.
What is an appraisal report?
An appraisal report is a document that clearly states the kind of value being determined, such as fair market (used for taxes), replacement (used for insurance coverage), and liquidation (used for bankruptcy or business dissolution), describes the property being valued, includes the appraiser’s qualifications, and the property’s comparable sales.
What can I do if I am not happy with my appraisal?
Good appraisers won’t mind doing a reconsideration of value. They will focus on gathering more data and returning it back to you in a timely manner. However, if an appraiser agrees to change the value with no hesitation, that is not the appraiser you want! As pleasing as it may sound at the time, this can cause enormous problems down the line for both you and your appraiser.