Real Estate Appraisal FAQ
WHEN TO HIRE AN APPRAISER?
- For any mortgage and real estate transaction
- When applying for a loan against a property
- For a tax assessment to reduce property taxes or to dispute improperly assessed taxes
- To settle an estate
- To determine the property value when selling your home
- To assist you with buying a home at a fair market price
- To settle legal disputes
For answers to your questions about appraisal in Houston please call us for more information.
WHAT IS IN AN APPRAISAL REPORT?
Depending on the type of report an appraisal contains:
- The precise purpose of the appraisal and the client’s objectives for the appraisal.
- The reported value of the property and how that value was interpreted.
- The date the appraisal takes effect.
- The characteristics of the property including, location, physical features, permanently installed items, 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, 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 ensure that the property is valued in the amount of the requested loan. Lawyers and accountants frequently hire appraisers to help determine property values in the course of divorce and estate settlements.
REAL ESTATE APPRAISAL VS. REAL ESTATE INSPECTION?
A WJ Funk & Co appraiser does not provide a home inspection but performs a third party investigation of all accessible facets of a property including structure and amenities, from roof to foundation and surrounding areas for the purposes of determining its value on the open market.
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), tax records, and a range of other public documents and records. The appraiser compiles the data and comparative studies in combination with additional standard methods of analysis.
WHAT STANDARDS MUST AN APPRAISER FOLLOW?
All WJ Funk & Co appraisers must ensure that the following items are covered:
- Proper analysis and inclusion of all reported information.
- That no major errors of omission or commission were committed by an individual or group.
- That all appraisal services were carried out in a meticulous and discriminating manner.
- That the final report is easy to understand, complete and not easily disputed.
- All certified appraisers must meet extensive requirements. WJ Funk & Co appraisers are licensed to provide qualified reports and members of the Uniform Standards of Professional Appraisal Practice (USPAP).
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 homeowner hires an appraiser directly however, the appraiser may specify the purpose of the appraisal for estate planning or tax disputes and the homeowner retains all rights to the appraisal.