Appraisal Information

 
 

Contents of a Real Estate Home Appraisal Report:

 
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Each real estate appraisal report must reflect a credible estimate of property value and must identify the following:
  • The client and other intended users
  • The intended use of the report
  • The purpose of the assignment
  • The type of value reported and the definition of the value reported
  • The effective date of the appraiser's opinions and conclusions
  • Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items
 
 
  • All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature
  • Division of interest, such as fractional interest, physical segment and partial holding
  • The scope of work used to complete the assignment
 
 
 
 
 
 
 

Some Real Estate Appraisal Myths:

Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities and market trends.
 
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Myth: An appraisal is the same as a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection. The appraiser forms an opinion of value in the appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.
 
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Preparing for Real Estate Home Appraisals

Before a real estate home appraiser arrives, there are a few things you should know.

By law, an appraiser must be state-certified and licensed to perform appraisals prepared for federally related real estate transactions. Also by law, you are entitled to receive a copy of the completed real estate appraisal report from your lender.
 
 
 

To facilitate the real estate home appraisal process, have these documents ready for the real estate appraiser:

  • List of personal property to be sold with the home
  • Written real estate property agreements, such as a maintenance agreement for a shared driveway, etc.
  • Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
  • Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
 
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