June 6, 2023 - azappraisalcompany

HOW TO PREPARE FOR AN APPRAISAL

June 6, 2023 No Comments

For homeowners, a real estate appraisal is a critical step when buying or selling their home. The appraisal report for obtaining a mortgage allows the property transactions to occur among the buyer, seller, real estate agent and informs te mortgage lender of the market value of the property, so they can make a determination of the loan amount.

In order for an appraiser to be able to prepare an appraisal report and provide market value of the property they should be state licensed or certified to perform appraisals prepared for federally related transactions. Also by law, you are entitled to receive a copy of the completed appraisal report from your lender only, an appraiser cannot provide you with either the value or a copy of the report. If you disagree with the appraised value, you need to contact the lender (presuming you are obtaining a loan to purchase a home) and request a reconsideration of value, just make sure you have solid reasoning for it and supporting facts (i.e. additional comparables which you think can be considered, etc.)

To facilitate the appraisal process and make it most efficient, it is beneficial to have the following information provided to the appraiser prior to inspection:

A plot plan or survey of the house and land (if readily available)
Written property agreements, such as a maintenance agreement for a shared driveway
If the property is owner or tenant occupied or if vacant
If the appraisal is for refinancing of a loan or equity line of credit and there is recent MLS listing, share number of bedrooms and baths, occupancy status, internal and external improvements, new addition information, etc.
Title policy that describes encroachments or easements
Information about utilities – public or private, is there a gas at the property, well, septic, etc.
Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
Sheet that lists major home improvements and upgrades, the year of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
A copy of the current listing agreement and broker’s data sheet and Purchase Agreement if a sale is “pending”.
Information on “Homeowners Associations” or condominium covenants and fees.
A list of “Proposed” improvements if the property is to be appraised “As Complete” and given value as after the improvements are completed.
Beneficial features like location in gated community, mountain/golf/waterfront views, etc.

Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, be best though to answer all questions promptly prior to the inspection, so that the appraiser can get an understanding of the property and select the best comparable homes to use for deriving the market value.

Here are some other suggestions:

Accessibility: Make sure that all areas of the home are accessible, especially to the attic and crawl space
Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they’re human beings too! A good impression can translate into a higher home value
Maintenance: Repair minor things like leaky faucets, missing door handles and trim
FHA/VA Inspection Items: If you are planning to use FHA/VA loan, be sure to ask your appraiser if there are specific things that should be done before they come. Some items they may recommend might be: Install smoke detectors on all levels (especially near bedrooms) and ensure that they are operational; install handrails on all stairways; remove peeling paint and repaint the effected area; provide inspection access to the attic and crawl spaces.
If you have a manufactured home, it will be of great help if you can point the location of the HUD certificate and paper certificate that is usually located under the kitchen sink or in a closet inside the house. There is a metal plate with a number for each section of the manufactured home, if it has been painted over, make sure they are cleaned and clearly visible.

QUICK TIPS FOR A SMOOTHER APPRAISAL PROCESS

June 6, 2023 No Comments

Be transparent: Provide accurate and complete information about the property being appraised. Appraisers rely on accurate data to assess value.
Make a list of improvements: Create a list of all the improvements or renovations you have made to the property, including year completed and costs (if available) or the total cost to complete. This helps the appraiser understand the added value. It is critical to provide us with any other information you want us to consider before the actual inspection.
Prepare the property: Declutter the property before the appraiser arrives. You do not have to have the property in impeccable order, however, make sure the appraiser can see flooring, kitchen and bath improvements, etc. and have the ability to walk around and have access to each room and storage area in the house.
Restrain pets: We love your pets however they can be a big distraction during the appraisal. It would be best if you put them in one room when the appraiser arrives and once when the exterior inspection is complete either let them go outside or inform the appraiser where they are, so that room can be inspected last, so you can move them to another area that has already been inspected.
Highlight unique features: Point out any unique or standout features of the property that might enhance its value. This could include recent upgrades, energy-efficient elements, or desirable amenities. Feel free to provide any specifics about other similar homes in the area which you are personally aware of and can support.
Provide relevant documents: Gather important documents such as floor plans (especially important for custom homes or homes for which the floor plans are not available through the county), surveys, information about any additions which might not have been recorded in the county and affect the GLA, casita and other exterior features, and recent inspection reports. These documents can provide valuable information to the appraiser.
Share recent sales: If you are aware of comparable sales in the area, provide this information to the appraiser. It can assist them in determining the property’s market value.
Communicate with the appraiser: Respond to questions quickly and provide insights about the property, so that the appraiser has all the required information and prevent delays in finalizing the appraisal report.
Be realistic about value: Have reasonable expectations about the appraisal value. Appraisers use objective data and professional judgment, so it’s important to understand that the value may not always align with personal expectations.
Cost does not equal value: It is a common belief between homeowners and even realtors that the home value would increase due to cost spend to finish an improvement, however, this is a misconception. The value of a property is determined by the price a market participant is willing to pay. If an owner decided to spend $80,000 o a new pool, it does not necessarily mean that the house value increased by $80,000, in most cases, the contributory value of the improvement will be less than the cost of that improvement.
Understand the process: Ask the appraiser about their methodology and approach to the appraisal. Understanding the process can help you better interpret the final appraisal report.
Communicate your concerns: If you have specific concerns or factors that you believe may affect the property’s value, communicate them to the appraiser. They can consider these factors during their assessment.