Real Estate Appraisal FAQ
When to hire an appraiser?
For answers to your questions about appraisal please call us for more information.
What is in an appraisal?
Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignmentThe characteristics of the property including, location, physical features, , legal attributes, and all facets that affect the valuation including, economic factors, property rights and any known defects, restrictions, leases, reservations, covenants, contracts, declarations, special assessments, easement, environmental issues, ordinances, and other items of a similar nature.
Who hires an appraiser?
Appraisers are frequently hired by lenders to establish the market value of a property for a loan transaction to help determine the market value of the property for loan decisions. Lawyers and accountants frequently hire appraisers to help determine property values in the course of divorce and estate settlements. Property owners or managers hire appraisers for asset management purposes.
How do appraisers get information?
The data used in an appraisal report can be what is termed “Specific” or “General” and is gathered from Multiple Listing Services (MLS), nationally recognized subscriptions services subject has Loopnet and Costar, tax records, and a range of other public documents and records. Information is also gathered from conversations with local real estate experts including, brokers, lenders, assessors and contractors. The appraiser compiles the data and comparative studies in combination with additional standard methods of analysis.
What standards must an appraiser follow?
At Elwood & Martin Appraisals, LLC the following standards are covered:
For federal related transactions, we comply with both the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and USPAP. In certain situations it is also required that we conform with Yellow Book.
Who sees an appraisal report?
Appraisal reports for mortgage transactions may be paid for by the buyer for closing a sale, though the lending financial institution retains the right to use the report and all of its information. When a property owner hires an appraiser directly however, the appraiser may specify the purpose of the appraisal for estate planning or tax disputes and the property owner retains all rights to the appraisal.