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When and Why do I need to get a Real Estate Appraisal?
What Comprises a Real Estate Appraisal?
What makes a good Appraisal?
What questions should I ask when hiring and Appraiser?

When and Why do I need to get a Real Estate Appraisal?
A professional real estate appraisal is needed, when it is necessary to know the true market value of your home, your commercial building or vacant land. Mortgage lenders most often arrange for a professional appraisal. However, property owners, buyers and sellers or their attorneys may need to hire an appraiser in the following situations,

  • Asset Distribution
  • Arbitration Cases
  • Counseling and Consultation
  • Determination of a Fair Sale Price
  • Divorce, Division of Interests
  • Estate Evaluation
  • Eminent Domain
  • Employee Relocation
  • Expert Witness Testimony
  • Gift Evaluation
  • Income Producing Property Evaluation
  • Insurance / Cost Purposes
  • Market Analysis
  • Market Rent and Trend Studies
  • Partnership Dissolution
  • PMI Removal (private mortgage insurance)
  • Property Disputes (views, easements, etc.)
  • Tax Assessment Review

An appraiser is a professional who specializes in providing opinions of value. Most ap­praisers specialize in real property; others specialize in other types of property, e.g., gems or machinery and equipment. Professional, licensed and certified appraisers have completed a broad, basic education curriculum and continuing education requirements as well as mandated, supervised experience.

What comprises a Real Estate Appraisal?
The most visible part of the appraiser's work, the property inspection, is only the tip of the iceberg of what is involved. Before going to the property, the appraiser

  • Researches public records data
  • Obtains a plat map
  • Checks the zoning
  • Scrutinizes flood hazard data
  • Researches the sales and listings of similar properties in the immediate area

The data sources may include information from the Multiple Listing Services, Transamerica Intellitech (Metroscan), and First America Real Estate Solutions and California Marketing Data Cooperative. During the inspection, the appraiser identifies and evaluates structural details, makes drawings of the property and other improvements, and notes the quality of construction and current condition. Interior and exterior photographs are taken.
It is the job of the professional appraiser to determine these values by gathering, analyzing and applying information pertinent to a property.

What makes a good Appraisal?
Written appraisals should conform to the Uniform Standards of Professional Appraisal Practice and meet the requirements of the IRS, and/or the local courts, A good report should answer your questions and consider all rele­vant factors. It should include a correct defini­tion of value that is related to your intended use of the appraisal. You should feel satisfied and confident of the conclusions.


What questions should I ask when hiring an Appraiser?

  • What Qualifies You to Appraise? - A formal education embracing appraisal standards which consist of appraisal theory, princi­ples, procedures, ethics, and the law are essential. Reports must conform to the standards of the appraisal profession. For this reason, the Appraisal Foundation has established the Uniform Standards of Professional Appraisal Practice.
  • Are All Appraisers Licensed? – No! In California here is no legal certification or licensing required for appraisers. Membership in professional organizations ensures, through core courses, testing, educational programs, and standards, that its members are qualified to provide appraisals that reflect the utmost in accuracy, competence and integrity.
  • Do You Belong to an Appraisal Organization? - Membership is important because it shows that the appraiser must adhere to a code of ethics and conduct. In addi­tion to enforcing a code of conduct, the Appraisal Institute (AI) has provided quality educational opportunities and has rigid requirements for advancement and continued membership. AI is a Federally recognized leader in appraisal education and a pioneer and a strong supporter of appraisal reform and licensing laws.
  • What is your Experience? - Both experience and expertise are important. Federal reg­ulations require that appraisals meet strict criteria and be performed by qualified appraisers.
  • What should I Expect for My Money? ­You should receive the service of an educated appraisal expert who will provide you with a formally written and descriptive report which the appraiser is willing to defend in court.
    What is Your Fee and on What Basis is it calculated? - It is not ethical to charge a fee based on a percentage or contingency or outcome. The fee should be negotiated.