Residential Appraisal & Broker Reports
Brett Parker: email@example.com
If you are an AMC, we would love to provide our services to you! Please email brett at: firstname.lastname@example.org
The fee for a full appraisal is $525. The full appraisal report requires that I to come out to your property to take pictures, notes, and sketch the perimeter/interior of your property (not on drive-by nor comparable selection). This report shows neighborhood, market condition, maps, and "like" comparables representing your property.
The drive-by report is $375. The same is done as the full report, Only there is no need for me to enter the property. You and I will determine if we have enough information to perform a credible report and for your needs and users of the report.
Broker provided comparables (listings, expired listings, sales) and property inspections are $225. Please be aware that I will put my "broker" hat on. This is not an appraisal nor am I to mislead you as such. This report is for those wanting to know the value for listing for sale, investing purposes, knowing the market, consultation. You may also need your property inspected (not serviced) for non-value related purposes; perhaps it has been vacant a while, or you are out of town or any other purpose. Some have wanted to know how a potential tenant has kept a prior property before renting yours. Some may want to know how the tenants are treating a property This is done in my capacity as a Real Estate Broker/Property Manager and not an appraiser nor home inspector. However, the same standards are followed if applicable.
Be aware that you are unable to use the appraisal report for lending purposes. It is required that your lender use an AMC (appraisal management company). If this be the case, contact your loan officer or mortgage broker and do not pay nor order an appraisal. They will have to do that.
What is an Appraisal?
Appraisal is the act or process of estimating value. An appraisal provides an answer to a client's specific question about the value of a real property interest. The appraiser's answer is an estimate; it does not establish value of real estate. An appraisal is one person's opinion based on research in the appropriate market, the assemblage of pertinent data, and the application of appropriate analytical techniques.
This next heading below may make you fall asleep!!!
The appraisal process is followed by the appraiser and as noted by the Uniform Standards of Professional Appraisal Practice (USPAP) states:
An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results. The scope of work must include the research and analyses that are necessary to develop credible assignment results. An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use. An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be biased. An appraiser must gather and analyze information about those assignment elements that are necessary to properly identify the appraisal or appraisal review problem to be solved. An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be biased.
And...summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained;
Types of Appraisals
Depending on what your need is will determine the type of appraisal report used. Typical reports are: full report (inspection inside), drive by (data is available without the interior inspection). Appraisals are used for financing (see below), appeals, legal purposes, consulting. Appraisers follow Uniform Standards of Professional Practice or USPAP. This ensures that the appraiser is following guidelines and does the report in a proper manner. Due to regulation in the lending industry, do not contact an appraiser for mortgage purposes. You need to go through the lender first. An appraiser will then be assigned through the proper channels.
The Appraisal Process
If an appraisal is needed, contact the appraiser. This can be done by phone, fax, or email. At this time the appraiser will ask what your needs are and help determine the type of report needed. Should an interior inspection be required, an appointment will be set to walk through your property and gather the necessary data. The exterior of the home will need to be measured with photos taken of the property. At the time of the inspection, the appraiser is unable to determine a value. Certain processes and guidelines must be followed later at the appraisers office. The appraiser assembles pertinent data, applies appropriate techniques, and puts the conclusion in a report form. This process generally takes anywhere from 48 hours to 1 week.
Depending on the type of report desired, fees can range from $225.00 for a typical inspection/comparable search (Broker) to $525.00 for a full residential appraisal report. The 2-4 unit appraisal reports are $675. Certain drive by reports may not require an interior inspection, so the fee would be lower. Other larger homes/improvements may also require a fee adjustment due to the appraiser having to spend more time in measuring. Additional forms or income reports may also require a fee increase. Appraisal Management Companies and Lenders may also have a discount depending on the amount of business provided to the appraiser.
Software and Reports
Digitized reports can be printed or they can be transmitted via the internet to clients, with the appraiser using Wintotal, XML, ENV/AI and PDF software.