Antietam Appraisals has answers to "Frequently Asked Questions"
What is an appraisal? What is an appraisal? (List of questions)An appraisal is an evaluation leading to an opinion of value. This opinion or estimate is figured through the use of a formal method that generally uses the three main "common approaches to value". The Cost Approach is one of the processes that appraisers use to find the value of a home; it involves concluding what the improvements would cost minus physical degradation, plus the land value. Another of the processes is the Sales Comparison Approach - which concerns discovering a comparable analysis to other similar nearby properties which have recently sold. Usually, the Sales Comparison Approach is the most definite indicator of market value of a residential property. The third approach is the Income Approach, which is of most importance in appraising income producing properties - it involves estimating what an investor would pay based on the money produced by the property.What does an appraiser do? (List of questions)An appraiser forumlates a fair and credible assessment of market value, often in the context of a real estate sale. Appraisers demonstrate their findings in appraisal reports.Why would someone request a real estate appraisal? (List of questions)There are many reasons to get an appraisal from Antietam Appraisals with the most common reason being real estate and mortgage transactions. Some other reasons for obtaining an report include:
Is an appraisal the same as a home inspection? (List of questions)Appraisers do not do provide residential property inspections and are not home inspectors. A third-party home inspector will investigate the structure of the home, from the roof to the foundation. The archetypal house inspector's report will include an evaluation of the condition of the property's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and accessible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.My agent performed a CMA for me. Is that the same as an appraisal? (List of questions)Simply put, it's like comparing opera to country. The CMA depends on indefinite market trends. Appraisals use comparable sales which are verifiable resources. Area and architectural values are also a priority in an appraisal. The CMA will provide a non-specific figure. Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value.But the most significant factor is who's creating the report. A CMA is written by a real estate agent who may or may not be trained in technical valuation concepts or even have a handle on market trends. The appraisal is created by a licensed, certified professional who has made a career out of valuing properties. Moreover, the appraiser is an unbiased party, with no vested interest in the value of a home, unlike the agent, who gets a commission based upon the value of the home. What can I expect to see in my appraisal report? (List of questions)The main objective of an appraisal report is to give a value opinion, and depending on the scope of the report, you'll usually see the following:
Once the appraisal has been delivered, how can I have a guarantee that the value indicated is legitimate? (List of questions)In communicating an appraisal report, each appraiser must ensure the following:
Who employs appraisers? (List of questions)Commonly, appraisers are hired by lenders to render a value opinion on a house involved in a loan transaction. Attorneys and CPAs also hire appraisers for asset division and estate settlements.Where does Antietam Appraisals get the information used to estimate values in Washington County or other areas? (List of questions)Compiling information is one of the main tasks an appraiser does. Data can be divided into Specific or General. Specific data is collected from the home itself; Location, condition, amenities, size and other specifics are gathered by the appraiser while on site.General data is collected from a number of places. Local Multiple Listing Services (MLS) have data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Appraisers often have to report when a property lies in a flood zone, and that information is retrieved from a FEMA data outlet such as a la mode's InterFlood product. And last but not least, the appraiser gathers general data from his or her collective knowledge gained from doing assignments for other properties in the same market. How can a licensed appraiser help me? (List of questions)An appraisal is a worthwhile whenever your home's value is relevant to some financial decision. For those selling a home, you'll want to determine a price that gets you the most profit but also ensures you don't have to wait too long for a buyer to show up; an appraisal can help with that. When buying, be sure you're not overpaying by commissioning an independent appraisal. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. Simply put, a home is often the single, largest financial asset anybody owns. Knowing its true value means you can make smart financial decisions.What exactly is PMI and how can I get rid of it? (List of questions)PMI is the common abbreviation for for Private Mortgage Insurance. It guards the lender in case a borrower doesn't pay on the loan and the market price of the property is less than what is owed on the loan. You can have your PMI dropped once you've achieved 20% equity in your home through appreciation and principal payments.
How do I get ready for the appraiser? (List of questions)The first step in most appraisals is the home inspection. What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general condition of its amenities. Inside, pick up any clutter and make sure we can access things like furnaces and water heaters. In the yard, trim any bushes so we can be free to get an accurate measurement of outside walls.The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
What does "Market Value" mean? (List of questions)In real estate appraising, Market Value is commonly defined as:
Once complete, who actually owns the appraisal report? (List of questions)For mortgage transactions, the lender orders the appraisal, either directly or through a third party. While the buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The buyer is certainly entitled to a copy of the report - it's usually included with all the other closing documents - but is not allowed to use the report for any other purpose without permission from the lender.It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage. In these scenarios, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stipulated otherwise, the home owner can do whatever they want with the appraisal. I want to get more for my house. Where should I spend money renovating? (List of questions)This really depends on where the home is. For example, putting in an inline humidifier could be nice in arid regions, but completely useless near the coast!As a rule, the most value returned from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms were second, returning 85%. On the contrary, an improvement that may not increase your value would be painting just for the sake of redecorating. |
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