It is essential in today's volatile housing market to get a real estate appraisal whenever you are buying or selling a home, even if an appraisal has been done fairly recently. Fluctuations in the housing market, changes in the demographics or popularity of neighborhoods, comparable sales in an area, even construction of new roads can affect the appraisal of a home. Not to mention, that most banks will not finance a mortgage without a real estate appraisal. If you are concerned about the cost of a home appraisal, here are a few things you should know about a real estate appraisal.
What should be included in the home appraisal cost?
Your appraisal will include details about the home, a description of the neighborhood and a look at similar properties in the same neighborhood. Similarities include number of bedrooms and bathrooms, square footage, age and style. It should also contain an evaluation of the neighborhood in terms of the real estate market, an estimate of how long it would take for the property to sell, and descriptions of any problems with the property that would make the value decline. Many appraisal companies will have a set fee for how much they charge for an appraisal, however, the size of your home, and the neighborhood in which it is located will often affect the cost of the appraisal. Larger homes require more work and time to appraise, then smaller ones. And homes with more complicated features, such as swimming pools, guesthouses, tennis courts and any other feature which is not part of the average home will take more work and research to find good neighborhood comparables.Finding a good appraiser
The best way to find a good appraiser is to look at their ratings and reviews! A poor appraiser, one who values property too high or too low will b discovered very quickly as a house sells for thousands less than its neighbors, or sits on the market for months on end...or worse yet, is turned down by the lending bank! Just as a bad appraiser is spotted very quickly, a good appraiser is respected by buyers and sellers alike. If you cannot decide who to use, another great resource is to ask your realtor who is respected in their community.Who sets the standard for an appraiser? Are they licensed?
There is licensing for appraisers. In a few states licensing is mandatory for any appraisal but most only require licensed or certified appraisers for mortgage loans over $250,000.Residential appraisers can appraise one to four family properties, and sometimes small apartment or commercial properties. General appraisers can appraise all types of properties. All state licensed and certified appraisers must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP). A copy of the current USPAP can be found on the Appraisal Foundation Web site at www.appraisalfoundation.org.Refer a Pro who does this service and receive an Amazon Gift Card!
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