Category: Appraisal

APPRAISED VALUE

An appraisal is typically required when applying for a mortgage. If you are purchasing a home, the lender will base the loan amount off of the lesser of the sales price or the appraised value. Many people will look to the price per square foot when valuing a home, however, this valuation could be misleading. Appraisers look to comparable sales in the neighborhood when valuing a property; they do not focus on the price per square foot alone. Example: If you are purchasing a 2-car garage 2,000 square foot home for $400,000, appraisers will look for other sales of 2-car...

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WHAT IF YOU DISAGREE WITH YOUR HOME APPRAISAL

What if you disagree with your home appraisal? Do you have to accept the appraiser’s findings without questioning them? You can question the appraisal; you can appeal the appraisal. The appeal process goes through the appraisal management company. You have to provide data in order to appeal. For example, if there are comparable sales (“comps”) that were not in the appraisal report, you can submit them for review. Remember, the appraiser will only consider comps up to the date of the appraisal. If they closed after the date of the report, they will not be considered. You can also question...

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WHAT IF YOU DISAGREE WITH YOUR HOME APPRAISAL

What if you disagree with your home appraisal? Do you have to accept the appraiser’s findings without questioning them? You can question the appraisal; you can appeal the appraisal. The appeal process goes through the appraisal management company. You have to provide data in order to appeal. For example, if there are comparable sales (“comps”) that were not in the appraisal report, you can submit them for review. Remember, the appraiser will only consider comps up to the date of the appraisal. If they closed after the date of the report, they will not be considered. You can also question...

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IS AN APPRAISAL NEEDED WHEN APPLYING FOR A MORTGAGE?

An appraisal may not be needed when applying for a mortgage. How can you get an appraisal waiver? Generally, an appraisal is needed to get a home loan, but, there are instances where this requirement is waived. Most home loans are sold to Fannie Mae or Freddie Mac. When underwriting these loans, they are submitted through their software, known respectively as Desktop Originator and Loan Product Advisor. The results determine the documentation needed to approve the loan and whether the property requires an appraisal. It is the algorithms in the software that determines whether an appraisal is needed. A large...

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ARE APPRAISERS QUALIFIED?

You may get an appraisal and wonder how the appraiser arrived at that opinion, and is the appraiser qualified? Appraisers are licensed, and to be Certified, must have extensive experience and education. In Arizona, appraisers must have their fingerprints submitted for a criminal background check. If new, the appraiser starts out as a Trainee Appraiser. The Trainee Appraiser must take the required classes and work under a qualified registered Supervisor for 3 years. To become a Licensed or Certified appraiser, the appraiser must pass a National Exam. A Licensed Appraiser must have an associate’s degree, 2,000 hours of experience in...

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APPRAISAL REPORT: AS IS-OR-SUBJECT TO

As you know, an appraisal provides an opinion of value of the property, but, did you also know the appraisal contains comments on the condition of the property? An appraiser will comment on the condition of the property based on what they see during their visit. They will not inspect the property like a property inspector, if there is something they see that may need repair, they will comment on it in the report. For example: If they see stained ceiling tiles, they may call for the roof to be inspected. If they see a window is cracked, they may...

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