General

This really depends on where the home is. For example, if you live in a cold region, insulated windows can be a real plus. But they aren’t as attractive in a warm-weather climate. As a rule, the best ROI from renovating a home comes in the kitchen. One recent study revealed that putting $20,000 into a kitchen remodel would add about $17,500 to the value of the home – or about an 88% return on investment. Bathrooms were second, yielding 85%. On the contrary, an improvement that may not add value would be painting just for the sake of redecorating.

For mortgage transactions, the lender requests the appraisal, either directly or through a third party. Even though it’s the buyer that eventually pays for the report, the lender is the intended user. The buyer is entitled to a copy of the report – it’s usually included with all the other closing documents – but is not allowed to use the report for any other purpose without permission from the lender. It’s different when it’s the homeowner hiring the appraiser for things outside securing a mortgage. In these situations, the appraiser may state the purpose of the appraisal; for PMI removal,

In real estate appraising, Market Value (as opposed to Fair Market Value) is commonly defined as: “The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well

We start with an inspection of the home. During this process, we will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure we have easy access to the exterior of the house (gates aren’t locked, etc). Trim any landscaping and move any items that would get in our way while we measure the structure. Indoors, make sure the appraiser can easily access appliances like

PMI is the common abbreviation for for Private Mortgage Insurance. This added policy covers the lender in the event a borrower is unable to pay on the loan and the value of the home is less than the loan balance. You can have your PMI dropped once you’ve achieved 20% equity in your home through appreciation and principal payments.

Any time the value of your real estate is being used to make a significant financial decision, an appraisal helps. For those selling a home, you’ll want to determine the price that gets you the most profit but doesn’t leave your home on the market too long; an appraisal can help with that. When buying, be sure you’re not overpaying by commissioning an independent appraiser. If you’re engaged in an estate settlement or divorce, it ensures that property is divided fairly. A house is often the single, largest financial asset anybody owns. Knowing its true value means you can make

Gathering data is one of the primary activities of an appraiser. Data can be divided into Specific or General. Specific data is from the property itself; Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection. General data is gathered from a variety of places. Local Multiple Listing Services (MLS) have data on recently sold homes that could be used as comparables. To verify actual sales prices, we use tax records and other public documents. Flood zone data is retrieved from FEMA data outlets, such as a la mode’s InterFlood product. And last but

Most of the time, appraisers are called upon by Banks to render a value opinion on real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters, Divorce, Estate Settlement, Tax Appeal, Insurance Replacement Cost and investment decisions.

Licensing and certification is achieved through coursework, tests and experience working under a supervisory appraiser. Once licensed, he/she is required to complete continuing education courses in order to keep the license up to date. To see the specific requirements for any state click here.

In communicating an appraisal report, each appraiser must ensure the following: That the information analysis contained in the appraisal was appropriate. That major errors of omission or commission were not committed individually or collectively. That appraisal services were not rendered in a careless or negligent fashion. That a credible, defensible appraisal report was communicated. To become a state Certified appraiser, there are strenuous education requirements as well as on the job experience that must be logged – all with the objective of gaining the skills required to render unbiased value opinions. Plus, appraisers must obey a meticulous industry code of