THE HOME APPRAISAL PROCESS:
CONSUMERS SHOULD KNOW…AND WHY
of the home appraisal process -- and the differing credentials of those who
appraisal services -- benefits home buyers and sellers alike. This knowledge is
information tool to help them make wise real estate investment and sales
appraisal process and written reporting formats vary, depending upon the nature
of the appraisal. But the appraisal’s fundamental purpose is this: To
impartial and carefully documented estimate of property value, thereby
the interests of buyers, sellers, mortgage lenders and other involved parties.
Financing/Refinancing and the Appraisal
buyers seeking financing, and homeowners seeking refinancing, are required by
mortgage lenders to underwrite the cost of an appraisal, which typically ranges
and $400. Indeed, the appraisal is the essential component in determining loan
for the property in question.
lenders typically select appraisers from “approved” lists they compile and
Consumers can request a copy of these lists and request that an appraiser be
with specific credentials or formal professional designations.
Owns the Appraisal
pay for their home/property appraisals. But their lending institution
owns the appraisal report document. Unless the lender “releases its interest”
the document, it remains the lending institution’s property.
and Read the Appraisal
must be given a copy of the appraisal report, upon written request, under the
Credit Opportunity Act. It is in their best financial interest to make this
to take the time to carefully review the report.
written appraisal contains valuable and often-revealing information --
and physical description of the property, square footage measurements, list of
properties in the neighborhood, a neighborhood description, and a narrative
current real-estate activity and/or market trends in the vicinity.
the Best-Qualified Appraiser: Protect Your Major Investment
get the most accurate and impartial appraisal by the best-qualified appraisal
consumers should distinguish between appraisers who are only state
or certified and those who have demonstrated the advanced levels of education
experience required for membership in the Appraisal Institute. Cost
likely to be negligible.
Institute-designated professionals must:
· Demonstrate knowledge of the fundamental
principles of real
appraising by passing a series of rigorous examinations .
· Have the proven ability to produce concise,
well-reasoned valuations and reports that
to the Appraisal Institute’s strict Code of Ethics and Standards of
· Display technical skills in various
· Hold an undergraduate degree from a
four-year accredited college or equivalent.
· Fulfill continuing-education requirements
to maintain their certification.
commitment to professionalism makes Appraisal Institute members the preferred
choice for real estate appraisal services.