Selling a home involves a lot of pre-sale activity where a residential real estate appraiser plays an important role. The appraiser’s job is to determine the fair market value of your house based on proper research on the selling prices of homes in your neighborhood and on a visual inspection of your house and property. So here are a couple of things the appraiser will do in the residential real estate appraisal – he will inspect thoroughly. Check the plumbing, determine the number of rooms, look inside them to see their condition and even take pictures of all the rooms. In case of any leakages, or pooled water on the kitchen floor near the washer, he will question you about their origin. He will seek to find if any new fittings have been put in places like a new shower or new windows because this freshness will hike up the selling price of your home, and he needs to take that into consideration. His appraisal also covers the outside of the home. So he will measure the entire house from the outside, as well as your entire property taking pictures of every side of the house. If your home offers a view of scenic beauty like the Manhattan skyline he will immediately seize this fact and raise the value of your home. Or if you have installed a new roof or siding. It works the other way as well, so, if your home overlooks something unappealing, this will reduce the value of your home.
Before the real estate appraiser comes knocking on your door for a residential real estate appraisal check out any areas that may require maintenance and which on repairing could jack up the price of your home. Leaking floors, loose floorboards, choke gutters can all run down the selling price if you keep them that way and attempt to sell. Telling the appraiser that you plan to fix them later will not help the value. He or she has to base the appraisal on the condition of the house at the time of the appraisal.Also ensure your home is embedded with safety equipment which could be smoke alarms, carbon monoxide alarms, and home security alarms, among other things. All this gear must be in sound working condition if you wish to impress upon the appraiser the good upkeep of your home. This principle of safety works well in the case of a commercial property appraisal as well.
Often residential real estate appraisers are hired by banks to determine the fair market value of the selling property to help them make a decision about how much to lend to the home buyer. Banks must follow particular loan-to-value ratios when issuing mortgages. An appraisal can take a day to several days to finish. Once it is done, the bank will provide you with a copy of the appraisal telling you the fair market value of your house.If you've done your homework before pricing your home, the fair market value should be very similar to the selling price.
Commercial real estate appraisals are more subjective in nature than residential real estate appraisals as much of the value derived from a commercial building is based on the rental rates received relative to the expenses paid out. The underlying asset is important, but not even close to the same way that a residential property values assets. Some things need to be kept in mind if you are going in for a commercial real estate appraisal because you are selling or buying the piece of property or if you want to establish a value of a lease or lodge a property tax appeal. For one, inspection is only a small part of the commercial real estate appraisal process. Appraisers have to research public ownership and zoning records, investigate demographic and lifestyle information, and compile comparable sales, replacement costs, and rentals. They then analyze this information as it relates to the value of the property. Finally, they write a report on their findings. Do not withhold any information from the Appraiser who has no interest in unduly expanding his work files but needs certain information to quickly complete the assignment. You will probably be asked if you can provide a property tax bill, a set of drawings of the property, income statements, and other things. If an appraiser refuses to do something that you ask for, it is probably because of the obligation to adhere to the Uniform Standards of Professional Appraisal Practice, which, among other things, requires them to provide an unbiased opinion. Also, the client is the party that orders the appraisal so if the appraisal is for financing, the lender is the client. Appraisers are obligated to maintain client confidentiality, so if you are the borrower or any other party, the appraiser cannot release the appraisal report or any other confidential information to you. Similarly, if you order an appraisal as part of a property tax appeal and are afraid that the appraised value might be higher than the assessed value, you can rest assured that the appraiser won't release the results to the property tax board without your permission.
RD Clifford Associates, Inc. has been providing quality full-service valuation and real estate appraisal services to multi-industry clients and cross-disciplines in New Jersey, New York, and Pennsylvania.
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