FAQ's

• To obtain a loan.

• If you would like to lower your property tax obligations.

• To help a homeowner realize if they owe less than 80% of their home's value and remove Primary Mortgage Insurance.

• To fight inflated property taxes.

• If you need to settle an estate.

• To provide you an edge when purchasing real estate.

• To determine an honest sales price when listing your home.

• To protect your rights if your property is being taken by means of eminent domain in a condemnation case.

• Because an official agency such as the IRS requires it.

• If you ever find yourself in a lawsuit.

Each appraisal must reflect a credible estimate of value and should clearly state the following:

• The client and whose purposes the appraisal is to serve.

• How the appraisal is supposed to be used.

• The reason for the appraisal.

• The type of value contained and a definition of the value reported.

• The effective date of the appraisal.

• Pertinent property characteristics, including: location, physical characteristics, legal attributes, economic factors, the property rights valued, and non-real estate items included in the valuation, such as personal property, items that are more or less permanently installed and even intangible items.

• Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and the like.

• Division of interest, such as fractional interest, physical segment and partial holding.

• The scope of work considered to complete the job.

For a more detailed look at the work that goes into an appraisal report, see the "Sample Report" tab.

The first step in most appraisals is the property inspection. What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general condition of its features. The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house (gates aren't locked, etc). Trim any bushes and move any items that would make it difficult to measure the structure. On the inside, make sure the appraiser can get to appliances like furnaces and water heaters.

You can make things go faster and improve the quality of the appraisal report by having the following things on hand:

• A plot plan or survey of the house and land (if readily available).

• List of personal property to be sold with the home.

• Most recent real estate tax bill and or legal description of the property.

• A list of any major home improvements and enhancements, the date of their installation and their cost (for example, the addition of Insulation or roof repairs) and permit confirmation (if available).

Mortgage lenders are an appraiser's most likely customer, requesting their services to ensure a home involved in a mortgage transaction is adequate collateral for a loan. Appraisers also provide opinions in litigation cases, tax matters and investment decisions. Individuals may also request an appraisal.

PMI is short for for Private Mortgage Insurance. PMI guards the lender in the event a borrower is unable to pay on the loan and the market price of the property is less than the balance of the loan. Once you reach the point where your home's equity plus the amount you've paid is at least 20% of your loan balance, you can have your PMI dropped.

For mortgage transactions, the lender requests the appraisal, either directly or through a third party. While the buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The buyer is entitled to a copy of the report - it's usually included with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender. The lender is the client.

This rule doesn't apply when a home owner hires an appraiser directly. In these scenarios, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stated otherwise, the home owner can use the appraisal for any purpose.

One of the primary things an appraiser does is to collect data. Data can be categorized as either Specific or General. Specific data is collected from the property itself; Location, condition, amenities, size and other specific data are documented by the appraiser during an inspection.

General data is gathered from a variety of sources. Local Multiple Listing Services (MLS) have information on recently sold homes that might be used as comparables. To verify actual sales prices, we research items in the assessor's office and other public documents. Flood zone data is gathered from FEMA data outlets, such as a la mode's InterFlood product.

And most importantly, the appraiser assembles general data from his or her past experience in doing assignments for other properties in the same market.