Many people try to determine the values of their real estate by researching websites that value a home based on aggregate data collected through various means. While these online services can be quick and seem easy, computer generated reports can be grossly inaccurate. More often than not, computer data collected from outdated and often unreliable resources can cause issues when trying to determine a fair value of real estate in any specific market. These websites may be of some value in showing valuation trends, but can in no way replace the services of a local real estate appraiser.
Many complex variables must be taken into account in order to accurately establish the fair market value of any property. A professional real estate appraiser is highly trained to track and apply such information to valuations of different types of property. A highly rated school system, economic development and surrounding neighborhoods can drastically affect a home's value for the better. Also, run-down areas that are in the middle of a gentrification process may not be fairly appraised by a computer program, someone outside the area or lacking the requisite training. Local appraisers are the only ones who will have intimate familiarity with increasing or decreasing values and trends in their communities.
Choosing a reputable local appraiser can be the difference between a good appraisal and a bad one. This comes into play whether you need a property valuation during a divorce, for an estate settlement, or to satisfy a lender requirement for a mortgage. If an appraiser is not closely acquainted with the market area they serve, many factors used to determine a home's value may be inadvertently omitted from the calculations. Without this familiarity with current market area trends, an appraiser from outside the area may give a skewed value of the property.
As banks and other financial institutions are now dealing with untenable volumes of foreclosed homes, there is a growing trend among banks and other financial institutions to hire real estate brokers to complete BPOs (Broker Price Opinion), rather than pay appraisers for a home's valuation. Although BPOs should be more accurate than computer generated reports in determining a property's value, there is considerable controversy as to whether or not these real estate agents have adequate training to complete these reports effectively.
BPO services cost less than a uniform appraisal report; however, much like their computer generated counterparts, BPOs often omit crucial information. Many lenders do not even require an in-depth inspection or interior inspection of a home, for example. How can anyone hope for any type of realistic property valuation without an on-site inspection?
Prior to licensing or certification, appraisers must complete a stringent training course through an approved educational facility. Some states also require appraisers to apprentice under other, more experienced professionals before they are allowed to work independently. Good appraisers will carefully examine all aspects of the property. This includes square footage, room count, types of rooms, condition of property, lot size, neighborhood trends and comparable properties in the area that have sold recently, in addition to similar properties that are on the market at that time.
It takes longer to complete an appraisal compared to a real estate agent's BPO or a computerized report. However, an appraisal report is far more in depth and lengthy. Every variable used to arrive at the valuation is clearly included in the final report.
Finding an experienced appraiser in your area should not be too difficult. Local lenders or banks are an excellent source of referrals. Also, searching an online directory or your local yellow pages can be useful when searching for a professional appraiser.
Many complex variables must be taken into account in order to accurately establish the fair market value of any property. A professional real estate appraiser is highly trained to track and apply such information to valuations of different types of property. A highly rated school system, economic development and surrounding neighborhoods can drastically affect a home's value for the better. Also, run-down areas that are in the middle of a gentrification process may not be fairly appraised by a computer program, someone outside the area or lacking the requisite training. Local appraisers are the only ones who will have intimate familiarity with increasing or decreasing values and trends in their communities.
Choosing a reputable local appraiser can be the difference between a good appraisal and a bad one. This comes into play whether you need a property valuation during a divorce, for an estate settlement, or to satisfy a lender requirement for a mortgage. If an appraiser is not closely acquainted with the market area they serve, many factors used to determine a home's value may be inadvertently omitted from the calculations. Without this familiarity with current market area trends, an appraiser from outside the area may give a skewed value of the property.
As banks and other financial institutions are now dealing with untenable volumes of foreclosed homes, there is a growing trend among banks and other financial institutions to hire real estate brokers to complete BPOs (Broker Price Opinion), rather than pay appraisers for a home's valuation. Although BPOs should be more accurate than computer generated reports in determining a property's value, there is considerable controversy as to whether or not these real estate agents have adequate training to complete these reports effectively.
BPO services cost less than a uniform appraisal report; however, much like their computer generated counterparts, BPOs often omit crucial information. Many lenders do not even require an in-depth inspection or interior inspection of a home, for example. How can anyone hope for any type of realistic property valuation without an on-site inspection?
Prior to licensing or certification, appraisers must complete a stringent training course through an approved educational facility. Some states also require appraisers to apprentice under other, more experienced professionals before they are allowed to work independently. Good appraisers will carefully examine all aspects of the property. This includes square footage, room count, types of rooms, condition of property, lot size, neighborhood trends and comparable properties in the area that have sold recently, in addition to similar properties that are on the market at that time.
It takes longer to complete an appraisal compared to a real estate agent's BPO or a computerized report. However, an appraisal report is far more in depth and lengthy. Every variable used to arrive at the valuation is clearly included in the final report.
Finding an experienced appraiser in your area should not be too difficult. Local lenders or banks are an excellent source of referrals. Also, searching an online directory or your local yellow pages can be useful when searching for a professional appraiser.
About the Author:
In the San Francisco Bay and Central Valley areas, call on Market Appraisal Group for reliable, accurate real estate valuation services with quick turnaround times. Their state certified and licensed appraisers are experienced with valuing all types of properties for mortgage lending, estate planning, PMI removal, and divorce and settlement disputes. Powered by SEO 2.0 Services
