Appraisers Bring Unbiased Opinion in Determining Value of a Home

By Keith Loria

All real estate agents help you determine the value of your home by developing a Comparable Market Analysis, which is used in pricing the home for hopefully the perfect amount.

When a property fails to get any serious looks, an agent may recommend that a home seller invest in an appraiser to get a second pricing opinion, as the appraiser will come in with an independent, unbiased opinion to make sure the price is right for your marketplace.

“An appraisal is important in today’s market especially, because they are an objective and unbiased source of information,” said Michael H. Evans, president of Calif.-based Evans Appraisal Service Inc. “The appraiser is an independent professional who performs a service for a fee rather than for a commission and is therefore not as invested as others are who are making pricing decisions.”

A home appraiser will compare the condition of your house in relation to the comparable properties and will give you a reasonably good idea where your house fits in relation to recently sold properties. 

An appraisal can range in length from two pages to more than 100 and will include details about the house, a description of the neighborhood and side-by-side comparisons of similar properties. 

It will also contain an evaluation of the area’s real estate market, notations of major problems with the property that will affect its value and an estimate of the expected time it will take to sell the property.

Appraisals allow for homeowners and buyers to establish what is fair market value of a property. In addition, an appraisal allows a lender to know how much they can safely lend. 

“Credible opinions of value can help to stabilize the real estate market,” said Joseph C. Magdziarz, President of the Appraisal Institute, a global membership association of professional real estate appraisers. “Appraisers today are doing the same thorough, fact-based research and analysis they have always done.”

Earlier this year, the Appraisal Institute released several tips for consumers, providing guidance for homeowners and buyers seeking to ensure their sales are completed in a timely manner.

- Make sure the lender hires a qualified appraiser (such as a designated SRA, SRPA or MAI member of the Appraisal Institute). The lowest priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.

- Accompany the appraiser during the inspection of the property if possible. The more active of a participant you are in the process, the more you will understand it, and be able to catch any errors. 

- Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days. 

- Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to contact them.

- Have your agent ask the lender to order a second appraisal by a qualified and designated appraiser. 

- File legitimate complaints with appropriate state board or professional appraisal organizations.

If you’d like to speak with an experienced Frederick Maryland real estate agent who has your best interest in mind, please contact me with any of your real estate or mortgage questions toll Free, 24/7, at 1-800-395-9636 x7 or E-mail me at bill@homes2price.com. My Office number at Real Estate Teams, LLC is 301-695-3020 x2793

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