Q: What is an appraisal?
A: A real estate appraisal is a formal, written report resulting from an
inspection of a specific property and relating to its specific value in dollars
as of a specific date.
Q: What does an appraiser do during his/her inspection?
A: An appraiser inspects the property by walking through the interior and
around the exterior noting all aspects of market-related value. The appraiser
takes specific notes relating to the assets and liabilities of a property.
Q: What does the appraisal report consist of?
A: An appraisal report is the compilation of facts concerning a specific
property put into a written format. The report consists of a complete
description of all the operating and functional parts of a home that relate to
market reaction, the inclusion of similar recently closed properties and if
necessary, properties that are under contract, as well as competing properties
that are presently on the market, color photographs of the property and the
competing properties, sketches of the interior floor plan and exterior in order
establish size, location maps, as well as a description of the property site
Q: How is an appraisal different from a Home Inspection? Different from a CMA?
A: A home inspection is a written report of the findings of an extensive
inspection of the condition of and functionality of the structure of the house
and the working parts such as heating systems, roofing material and utilities.
A real estate appraisal is a complete inspection of the properties for the
purposes of establishing a market value, which is established through a
A CMA is a typically a written report establishing a future marketing value to
determine a future sales price beyond that date of the CMA. An appraisal is the
compilation of facts establishing present day value as of the date of the
inspection and not future value.
Q: Why do I need a professional appraisal report?
A: The primary reason is that FNMA mandates the format of the appraisal so that
investors and purchasers of martgages will be purchasing similar information of
every property. Further, every State in the United STates require appraisers to
be licensed and require that every appraiser meets stringent educational
requirements and that the educational requirements be updated every two years.
Q: Do you do appraisals for PMI removal?
A: We complete appraisals for all purposes of which an evaluation of a property
for the purposes of removing PMI is one. We also complete appraisals for
tax appeals, court cases, divorces, trusts, refinancing, purchasing or sell a
Q: What home improvements affect my property value the most?
A: Any improvement to a property enhances value. Modernization of a
property effects apperaance and increased functionality, but the most important
aspect of value is to maintain the overall condition of the house so its
appearnce is appealing ot Buyers.
Naturally, expansion from 3 to 4 bedrooms, ample bathrooms to service the
number of bedrooms, as well as close proximity of a bathroom for guests or
occupants and expansion of the size or usable living area. Most importantly, an
owner or owners should not personalize improvements to a property that are so
personal that the marketplace will reject them.
Q: Where can an owner, seller or buyer obtain all of the appraisal data
contained in the report?
A: Legally, we can only supply copies of an appraisal to that source that
contracts us to complete the appraisal. The fact that someone pays for the
appraisal does not warrant a copy of the appraisal from the appraiser.
Typically, the mortgage company must supply a copy of the appraisal upon
Q: Where do we obtain all of the appraisal data contained in the report?
A: Specific information concerning the subject porperty and comparables
can be extracted from the Tax Assessor's records in the municipality
offices. Deed information is obtained from the records at the County
Clerk's office. Cost Approach calculations are based on the information
obtained from builders, contractors and lumberyards. General information
concerning public sales is obtained from the numerous multiple listing systems,
which are a part of this Company's computer system with which we have