Understanding the state-certified real estate appraisal process is vital whether you are a new home buyer or a seasoned homeowner.
The following is everything you need to know about licensed appraisers and real estate appraisals:
State-Licensed Real Estate Appraisers
Only real estate appraisers licensed by the state can legally perform a state-certified appraisal.
It is the appraiser's job to visit the property in question, take measurements, inspect various aspects, and then provide a professional opinion of its current market value.
A Real Estate Appraisal Protects Everyone
The appraisal process is vital because it protects:
- lenders from lending more than the current market value of a property
- home buyers from overpaying for a property
- potential home sellers from selling their homes below market value
Since the appraiser is being paid a flat rate and has no financial stake in the outcome of the valuation, their impartial view is of great value to lenders, borrowers, and homeowners alike.
The State-Certified Appraisal Certificate
When you or a lender order a certified appraisal on a property, the appraiser will generate a detailed report and a state-certified appraisal certificate.
The certificate gives the appraiser's final valuation number. A state-certified appraisal certificate is required by lenders to originate a mortgage loan.
Most Common Reasons for Ordering a Certified Appraisal
There are a wide variety of different scenarios where you or someone else would want to order a certified appraisal, including:
- buying property
- in preparation for selling property
- refinancing a mortgage loan
- determining the value for probate or estate settlement
- determining the value of the property with very unique features
In addition, it is common for joint owners to obtain an appraisal when they want to sell the property or one owner wants to buy out another.
What Appraisers Look at to Determine a Property's Value
Appraisers consider many different things to arrive at the market value of your property.
- recent comparable sales in the immediate area
- neighborhood housing trends and demographics
- size of the lot and home measurements
- property condition and any improvements
Also, the appraiser will inspect the quality and condition of the landscaping, basement, attic, and roof.
Finding the Most Qualified Licensed Home Appraiser in Your Local Area
Since the value of a property can vary greatly depending on its geographical location and other subtle factors, it is vital you enlist the services of a licensed real estate appraiser who does the majority of their appraisals in your immediate area. If you are struggling to find out who they are, a local real estate agent or broker can assist you.