Understanding Real Estate Appraisals

When Should You Hire an Appraiser?

Here are some of the more common reasons people need to hire an appraiser:

• For any mortgage and real estate transaction
• When applying for a loan against a property
• For a tax assessment to reduce property taxes or to dispute improperly assessed taxes
• To settle an estate
• To determine the property value when selling your home
• To assist you with buying a home at a fair market price
• To settle legal disputes

What’s the Difference Between a Real Estate Appraisal & Inspection?

A Lenders Appraisal Services, Inc. appraiser does not provide a home inspection but performs a third-party investigation of all accessible facets of a property, including structure and amenities, from roof to foundation and surrounding areas, to determine its value on the open market.

What Standards Must an Appraiser Follow?

All Lenders Appraisal Services, Inc. appraisers must ensure that the following items are covered:

• Proper analysis and inclusion of all reported information.
• That no major errors of omission or commission were committed by an individual or group.
• That all appraisal services were carried out in a meticulous and discriminating manner.
• That the final report is easy to understand, complete, and not easily disputed.

All certified appraisers must meet extensive requirements. Lenders Appraisal Services, Inc. appraisers are licensed to provide qualified reports and are members of the Uniform Standards of Professional Appraisal Practice (USPAP).

What’s Included in an Appraisal Report?

Depending on the type of report, a typical appraisal report can contain any of the following details:

• The precise purpose of the appraisal and the client’s objectives.
• The reported value of the property and how that value was interpreted.
• The date the appraisal takes effect.
• The characteristics of the property, including location, physical features, permanently installed items, legal attributes, and all facets that affect the valuation (economic factors, property rights, and any known defects, restrictions, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature).

How Do Appraisers Accumulate Information?

The data used in an appraisal report can be what is termed “Specific” or “General” and is gathered from Multiple Listing Services (MLS), tax records, and a range of other public documents and records. .

The appraiser compiles the data and comparative studies with additional standard analysis methods.

Who Views an Appraisal Report?

The buyer may pay for appraisal reports for mortgage transactions for closing a sale. However, the lending financial institution retains the right to use the report and its information.

When a homeowner hires an appraiser directly, however, the appraiser may specify the purpose of the appraisal for estate planning or tax disputes, and the homeowner retains all rights to the appraisal.