Real Estate Appraiser Portland, Oregon

An appraisal is investigation allowing the appraiser to come to an opinion of value. There are three “common approaches to value” which assists the appraiser come to this opinion or estimate. The Cost Approach is one of the processes that real estate appraisers use to find value; it involves discerning what the improvements would be worth without physical depreciation, adding the land value. Another of the methods is the Sales Comparison Approach – which concerns making a comparison to other similar properties within a close proximity which have recently sold. Generally speaking, the Sales Comparison Approach is the most definite indicator of value of a residental property. The third approach is the Income Approach, which is of most importance in appraising income producing properties – it involves estimating what an investor would pay based on the money generated by the property.

A key party in deciding the value of a home, an appraiser makes an unbiased and professional opinion on the worth of a property used in a real estate sale. Appraisers show their formal analysis in appraisal reports.

There are many reasons to order an appraisal from True Home Valuation, LLC with the usual reason being real estate and mortgage transactions. Some other reasons for getting an appraisal include:

• To obtain a loan.
• If you would like to reduce your property tax burden.
• To show the replacement cost of Primary Mortgage Insurance.
• To challenge inflated property taxes.
• To settle an estate.
• To offer you a negotiating tool when purchasing real estate.
• To figure out an honest property value when selling real estate.
• To defend your rights in a condemnation case.
• Because an official agency such as the IRS requires it.
• If you are ever involved in a lawsuit.

Appraisers do not do perform residential property inspections and are not home inspectors. An inspection is a third-party evaluation of the available structure and systems of a home, from the roof to the bottom. For the most part, a home inspection report will evaluate the amenities and the requirements of the house: air conditioning (weather permitting), electrical services, the condition of the heating system, the plumbing; then the structural integrity of the home such as the attic, accessible insulation, walls, floors, ceilings, windows, then the foundation, basement and visible structures.

Each report must reflect a credible estimate of 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.

Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. However, licensing and certification is most often associated with many hours of coursework, tests and practical experience. Once an appraiser is licensed, he or she is required to take continuing education courses in order to keep the license current.

Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions.

Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.

General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, such as Metro Appraisals’ InterFlood product. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.

PMI stands for Private Mortgage Insurance. It insures a lender against loss on homes purchased with a down-payment of less than 20%. Once equity in the home reaches 20% you can eliminate the PMI and start saving immediately.

The first step in most appraisals is the home inspection. During this process, the appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house. Trim any bushes and move any items that would make it difficult to measure the structure. On the inside, make sure that the appraiser can easily access items like furnaces and water heaters.

The following Items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:

• A survey of the house and property.
• A deed or title report showing the legal description.
• A recent tax bill.
• A list of personal property to be sold with the house if applicable.
• A copy of the original plans.