Frequently Asked Questions

Below, you will find answers to common questions. If you still have questions, please contact us and we will be happy to answer you.


 
What services do appraisers provide? 
Depending upon an appraiser's designation and qualifications, he or she can provide some or all of these services: Appraisals - Residential or Commercial; Counseling and Consulting; Evaluations; Expert Witness Testimony; Litigation Preparation; Feasibility Studies; Market Analysis; Market Rent & Trend Studies; Tax Assessment Review and Advice or Zoning Testimony.
What qualifies someone to be a real estate appraiser? 
Many states require all real estate appraisers to be, at a minimum, state licensed or state certified and have fulfilled rigorous education and experience requirements and must adhere to strict industry standards and a professional code of ethics as promulgated by the Appraisal Foundation. The specific requirements for any state can be found here.
Could my taxes go up if my appraisal is higher than my tax value? 
No! The appraiser is required to maintain confidentiality with the client, which would typically be you (if you undertook the appraisal) or the bank (in a mortgage related appraisal), not the local tax authorities.
How is property value estimated? 
There are three approaches to estimating market value; sales, cost and income approaches. In estimating real property values for all types of properties the assessor keeps track of what properties are selling for, what it would cost today to replace them, the costs to operate and repair them, what rents they may earn and many other factors affecting value.

Utilizing this data, current market value may be estimated in three different ways. The assessor may use one or more of these approaches to estimate what your property will sell for on the open market. The approach employed depends on the type of property and quality and quantity of data available for analysis.

The sales approach compares your property to others that have sold. Sales prices must be carefully analyzed to get a true picture. One property may have sold high because the seller included substantial personal property or special financing. Another may have sold low because the seller was in a hurry or needed cash right away. By comparing numerous selling prices of properties similar to yours, adjusting for differences between the sold property and your property (e.g., two versus three bathrooms), the market value for your property is estimated.

A second way to estimate market value is based on how much it would cost to construct a new replacement building, adjust for age & condition, and finally adding the land value.

The third way is to evaluate how much income the property (apartment, store, factory etc.) would produce if it were rented. The operating expenses, insurance, maintenance, and return on investment must be considered.
What does the appraiser look for? 
Typically, an appraiser needs to document the condition of the property, both inside and out, from the layout and features to degree of modernization including any updates as well as the overall quality of construction. This information will help to assist the appraiser throughout the valuation and comparison process.

The appraiser estimates the square footage (GLA - gross living area), by measuring the exterior of the home. Non-living areas, such as garages or covered porches, aren't included in GLA, but are accounted for and considered in value separately. Finished basements are also calculated separately from the above-ground GLA. The local market will dictate the contributory value of the finished basement, which can be influenced by governmental regulations, the degree of modernization, the quality of the finish, and other factors.

The appraiser will generally consider only permanent fixtures and real property. Because many above-ground swimming pools and small sheds are not permanent structures, they typically usually aren't included in the valuation. Depending on the specific installation process and local custom, however, an above ground pool or small shed might be considered part of the real property.
Is there anything I can do to speed up the process? 
You can help your appraiser to provide a more accurate appraisal in a shorter period of time by providing the following items: 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 & specifications, The date and purchase price you paid when you purchased the property; a list of recent improvements & cost as well as any other information you feel may be pertinent.