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Frequently Asked Questions
about Appraisals
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Why
do I need an appraisal?
How long will the appraiser be at the subject property?
Who
pays for the service of the Appraisal?
What will the appraiser look for when the appraisal is
done?
Who is the appraisal client?
What tips on selling my house do you have?
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For many families, a home
is the single biggest investment they will make. You can
be assured your Appraisal from FLORIDA CERTIFIED
APPRAISERS, INC. will be an exhaustive study in
valuation of your most cherished asset…your home. The
most common need for a residential appraisal is for the
purchase, sale, or refinance of a specific piece of real
estate. In addition, market conditions can change quite
frequently so a lender will require an appraisal to
determine the value of your property as it stands today
before issuing the financing. Your Bank, Credit Union,
Mortgage Company, or other type of Lender can typically
lend as much as 75% to 100% of the appraised (market
value) of the subject property. There are numerous other
needs for an appraisal including; divorce, estate,
foreclosure, insurance, pre-sale, tax appeals, PMI
removal, and various other reasons.
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The actual inspection of
the subject property is only a small part of the
appraisal process. The appraiser will normally contact
the owner, builder and or Realtor prior to inspecting
the subject property to obtain as much background
information as possible. Prior to doing the inspection
the appraiser typically checks the tax and assessment
records, MLS, and other sources and reviews recent sales
in the neighborhood or subdivision. During the
inspection process, the appraiser will normally walk
through the interior of the subject property making
notes on custom features and upgrades, as well as, any
obvious defects or deficiencies. The appraiser will
typically measure the exterior of the dwelling, make a
sketch and note any obvious exterior deficiencies that
may adversely affect market value or marketability. The
actual length of time needed for an onsite inspection
can vary greatly, depending on the size, style, age, and
condition of the property.
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It depends on who has
been designated to pay the fee at the time the appraisal
is ordered. The appraisal fee is generally paid by the
home buyer (if the appraisal is for a sale) as a part of
their closing costs. If the assignment is ordered by an
individual property owner/client the fee is generally
paid in advance or at the time of the appraiser's
physical inspection of the property being appraised. If
the assignment is ordered by the lender/client, then the
client may direct the appraiser to collect the fee from
the borrower or may elect to pay the fee directly upon
delivery of the completed report. It is the appraiser
that ultimately determines the terms and conditions for
payment, and how or when to extend credit. The client,
property owner or lender, should realize that the
extension of credit is not mandatory. If you are working
with a lender they will make arrangements for the
appraisal. Depending on the lender the appraisal may be
paid in advance or incorporated into an application fee,
some are COD, which means the buyer will pay for the
service at the time of the appraisal. It is a violation
of the Uniform Standards of Professional Appraisal
Practice (USPAP) to condition the payment of appraisal
fees upon a certain value. This is a clear and definite
violation of appraisal standards.
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The appraiser will
consider components that influence value such as
condition, quality, amenities, materials, repairs,
layout, and utility. The appraiser is trained to value
the real estate and not be affected by housekeeping or
the quality or condition of furnishings.
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Identification of the
client is important and can determine who "owns" the
appraisal report. The client is the one who orders the
appraisal, not necessarily the one who pays for the
appraisal. Regardless of who pays for the report, the
client is the person or entity ordering the report.
When an appraisal is
ordered by the client the appraiser owes allegiance to
the client and a confidential relationship is created.
Under provisions of the Uniform Standards of
Professional Appraisal Practice (USPAP) the client is
the person or entity that orders the property appraisal.
All copies of the
completed appraisal report are forwarded to the client
and all information contained in the report is
considered confidential between the appraiser and the
client. This relationship does not consider when the
appraisal fee is paid or who pays for the appraisal.
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What tips on selling my house do
you have ? (Presale Appraisal)
First you must find out how
much you want to list your home
for. The only way to get an accurate
picture of what your home is worth is
through a Presale or listing appraisal. You can
order a presale appraisal yourself. What better way to know
how much your home should sell for? This is
the most important tip when selling your
house yourself. Florida
Certified Appraisers has many years of
experience in this exact type of assignment
and can aid home owners with the very
serious question of how much is my home
actually worth in today’s real estate
market. Don’t make what could be a very
costly mistake of pricing your home without
consulting one of our professionals today.
We are here to help.
Even though you
may feel you know how much your home is
worth based on other listings in the
neighborhood you may find differentials
that the Realtor may not have considered.
An experienced Realtor® does know more about
pricing homes to be sold in their market
areas; however, pricing is an ancillary
function of a certified Pre-Sale Appraisal.
The appraisal will reinforce the Realtor's®
opinion of value and produce a more
competitive listing or support a high range
of value listing, if necessary. A Real
Estate Agent will do a CMA. A Current
Market Analysis is the method that Realtors®
use to derive an estimate of value for real
property. A certified appraisal is an
estimate of value prepared by an appraiser
who adheres to rigid federally mandated
guidelines such that the reported price is "loanable".
It’s difficult to sell a property for more
than it appraises for as the lender will not
lend in excess of the appraised value.
Without Pre-Sale Appraisals most sellers
will sell their homes for less than they are
worth because they lack confidence in their
list prices. A Pre-Sale Appraisal naturally
promotes confidence in the list price for
the seller and provides a benchmark for
contract negotiations, so the sellers don't
give away perhaps 3-10% or more of their
list price. They do not need to price their
home high to come down. In other words, an
appraised listing should be priced more
competitively from the beginning with little
or no negotiations expected or needed.
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