So what is a Real Estate Appraisal?
A Real Estate Appraisal is the practice of developing an
opinion of the value of real property, usually its Market Value. "Real
Estate Appraisal" is an American usage, however many other countries use the terms
"Property Valuation" or "Land Valuation". The need for appraisals arises
from the heterogenous nature of property as an investment class: no
two properties are identical, and all properties differ from each
other in their location - which is the most important determinant of
their value. The absence of a market-based pricing mechanism
determines the need for an expert appraisal/valuation of real
A real estate appraisal is performed by a licensed or certified
appraiser. If the appraiser's opinion is based on Market Value, then
it must also be based on the Highest and Best Use of the real
property. For mortgage valuations of improved residential property in
the U.S., the appraisal is most often reported on a standardized form,
known as the Uniform Residential Appraisal Report (URAR).
| Fee Schedule|
Comparable Rent Schedule
Fannie 2055 Drive By
Inspection Fee Only
Operating Income Statement
Servicing: Residential (all fees are subject to change)
House values fluctuate almost daily, especially in today's market. Therefore, if you are planning to sell your home, if you need to refinance or get a home equity loan, or are simply curious about what your home is worth, it is important to contact our office.
To determine what your home is worth many factors have to be taken into account:
If you are looking to get equity from your home or refinance to get a lower rate or cash out, all the above factors come into play and more. Your credit rating is likely to be one of the most important factors. Lately, banks have been shying away from "sub-prime" loans, which means people with "questionable" credit scores are more likely to pay a much higher rate and will be required to put more money down towards the price of their home loan. In fact, many lenders simply will not write new mortgages if credit ratings are too low.
- What price did the most recent similar homes in your area sale for?
- What condition is your home in?
- Is your home in a desirable location (close to the beach, nice view, on a cul-de-sac)?
- Are there a lot of homes for sale in your neighborhood?
- How are the local shools?
- How desperate are the buyers and sellers?
However, many people are simply curious what their home price would be if they were to list their home for sale. This is where a consultation with a real estate agent is the best plan of action. You can get a free home estimate from practically any real estate agent, especially if you are considering selling your home. You would be under no obligation to pay the agent unless you signed a sales agreement with them. So, why not get a free consultation and find your true house value today?
Appraisers and Appraisals
What You'll See on a Residential Appraisal Report
- Appraisers are licensed by individual states after completing coursework and internship hours that familiarize them with their real estate markets.
- The lender might use an appraiser on its staff, or contract with an independent appraiser.
- If you are allowed to choose the appraiser, and it isn't someone the lender is familiar with, the results might be subject to review before they are accepted.
- The appraiser should be an objective third party, someone who has no financial or other connection to any person involved in the transaction.
- The property being appraised is called the subject property.
- You will probably pay for the appraisal when you apply for your loan.
- Appraisals are very detailed reports, but here are a few things they include:
- Details about the subject property, along with side-by-side comparisons of three similar properties.
- An evaluation of the overall real estate market in the area.
- Statements about issues the appraiser feels are harmful to the property's value, such as poor access to the property.
- Notations about seriously flawed characteristics, such as a crumbling foundation.
- An estimate of the average sales time for the property.
- What type of area the home is in (a development, stand-alone acreage, et cetera).