Phone 303.916.7307 Fax 720.528.8542
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Phone 303.916.7307 Fax 720.528.8542
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When do you need an appraisal?
Every year, people in the United States buy, sell or refinance their part of the American Dream. Most, if not all of these transactions include an appraisal. It has become an important part of a real estate transaction to “Bring in an expert to insure we are getting a fair deal on this property.”
That is but one reason to get an appraisal.
Property Tax Challenges
Everyone has a different perspective on what a piece of real estate is worth. Challenging the tax assessment has become an annual ritual in many parts of the country. Most people go into these challenges unarmed to support their claims.
A real estate appraiser can help in such situations. While it may not be economical for a full appraisal, often an appraiser can do a limited appraisal or neighborhood analysis for much less. Documents of this type can carry a lot of weight when presented to a board of appeals.
PMI Removal
Private Mortgage Insurance is the supplemental insurance that many lenders require home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Often this insurance is rolled into the monthly mortgage payment and is forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan dips below 80%. In fact, the United States Congress passed a law** in 1998 that requires lenders to remove the PMI payments when the loan to value ratio conditions have been met.
**Homeowners Protection Act of 1998
Other Reasons for an Appraisal
What is an appraisal?
A home purchase is the largest, single investment most people will ever make. It may be a primary residence, vacation home or an investment property. The purchase of real property has many individual involved all who must perform there respective jobs in unison to make the purchase of real property happen.
Some of the people involved are the realtor who list, sells or shows the property that is to be sold or purchased, the mortgage company that provides the funding and the title company that ensures all trans actions are completed and that the title of real property passes from seller to buyer.
Among all of this an appraisal must be completed on the property in question. An appraisal is an unbiased estimate of value of what a buyer might expect to pay- or a seller receive for a parcel of real estate.
What goes into an appraisal?
It starts with an inspection. It is the appraiser's duty to inspect the property to ascertain the status and value of the property. The appraiser must see all features such as bathrooms, bedrooms, location and condition of these items. The appraiser must then report all updating/upgrades and determine if the property is average, above average or in good condition as compared to the neighborhood. The appraiser must also report all defects to the property that would also affect the overall value.
An appraisal may also include but not limited to, drawings, flood and location maps, interior and exterior photographs of the property and value graphs.
Depending on the circumstances an appraisal may be or include, but is not limited to, having a
*An Appraiser must have a FHA License.
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