Frequently Asked Questions - Residential Appraisal Services
1. What is a residential appraisal?
A residential appraisal is a professional assessment of the value of a residential property. This process is typically conducted by a certified appraiser who evaluates various factors to determine the property's market value. The purpose of a residential appraisal is to provide an unbiased and objective estimate of the property's worth utilizing credible data and supportable information for the appraiser opinion of value.
2. What factors influence the appraised value of a property?
When assessing the value of a residential property, appraisers carefully consider various factors. They look at the property's features, such as size, layout, number of bedrooms and bathrooms, and its overall condition. The location of the property is crucial, taking into account the neighborhood, proximity to amenities, schools, and the general environment. Appraisers also analyze recently sold properties in the area (comparables or comps) to establish a benchmark for the property's value. Current real estate market conditions, including supply and demand, are taken into consideration to assess potential impacts on the property's value. Additionally, any improvements or upgrades, whether structural or cosmetic, contribute to the appraisal, along with the general condition of the property, including maintenance and necessary repairs. Functional features, such as layout and design, are also evaluated to provide a comprehensive and accurate valuation.
3. How long does the appraisal process take?
The duration varies based on factors like property size and complexity. Generally, residential appraisals can take anywhere from a few days to a couple of weeks to complete.
4. What happens during the appraisal inspection?
An appraisal inspection can take anywhere from 30 minutes to over an hour, depending on the property's complexity and size. During the inspection, the appraiser will assess its key features and condition and involve the examination of the interior and exterior of the home. Expect the appraiser to measure the property, photograph the interior and exterior, and note taking. The goal is to gather information necessary for determining the property's market value. Homeowners are not required to be present, but their cooperation in providing access and information can contribute to a more accurate appraisal.
5. How can I prepare for a residential appraisal?
To prepare for a residential appraisal inspection, ensure the property is clean and clutter-free, address minor repairs, and document recent improvements with receipts. Provide easy access to all areas, gather important documents like surveys and tax records, and be ready to share the property's history and any unique features. If possible, compile information on comparable sales in the neighborhood. Make a list of upgrades and improvements, and be available during the inspection to answer any questions the appraiser may have. This proactive preparation enhances the appraisal's accuracy and efficiency
6. What is the difference between an appraisal and a home inspection?
An appraiser is a trained professional responsible for determining the fair market value of a property. Their primary role is to provide an unbiased and expert assessment of a property's worth. Appraisers consider various factors, including the property's condition, location, size, comparable sales, and market trends. This valuation is crucial for real estate transactions, refinancing, tax assessments, estate planning, and other purposes. Appraisers produce a detailed appraisal report outlining their analysis and the factors influencing the property's value. Their work ensures that buyers, sellers, lenders, and other stakeholders have an accurate and objective understanding of a property's worth in the current market. In contrast, a home inspection is performed by a licensed home inspector usually hired by the buyer to assess the property's overall condition and identify potential issues. A home inspector conducts a thorough visual examination of a property's interior and exterior, evaluating major systems like electrical, plumbing, and HVAC. They assess structural integrity, roofing, appliances, and safety features. The home inspector provides a detailed report with findings, recommendations, and photographs, aiding buyers and sellers in making informed decisions.
7. How is Square Footage calcuated?
Square footage is calculated by utilizing the Square Footage-Method for Calculating, by following the American National Standards Institute standard, also known as the ANSI standard. ANSI is a measuring standard for measuring, calculating, and reporting square footage and non square footage areas of subject properties for appraisals.
8. How much does a residential appraisal cost?
The cost varies based on factors like property size and location. Contact us for a personalized quote based on your specific appraisal needs.
9. How long is an appraisal report valid?
Appraisal reports are generally valid for a specific period, often around six months. However, lenders may have their own policies regarding the validity period.
10. When would you need a residential property appraisal?
A residential property appraisal is crucial for various purposes. In real estate transactions, it ensures a fair market value for buying or selling a property. It can be beneficial to determine the list price before listing a property and/or determining the sales price during the negotiation of a real estate sales transaction. When applying for a loan, Lenders require appraisals for mortgage financing/refinancing to establish the property's market value. In estate planning, appraisals aid in fair property distribution for inheritance. For homeowners looking to appeal their taxes, an appraisal provides an expert evaluation of the property’s value and serves as documented evidence to support the property owner's claim. Additionally, appraisals play a key role in divorce settlements, helping determine equitable division of assets.
11. What are the credentials of a Certified Residential Appraiser?
At the minimum a Florida Certified Residential Appraiser has completed over 200 classroom hours of pre-licensing education, typically holds a bachelor's degree from an accredited institution, obtained over 1,500+ experience hours, successfully completed a state and national certification exam, and passed a background check with the state of Florida. These credentials demonstrate the appraiser’s education, practical training, and competency in assessing residential properties within the state of Florida.