Those who have purchased or sold a house or commercial property understands the basics of what a real estate appraisal can be used for. Although, exactly what the appraisal process entails is a completely different story by itself. For those interested in purchasing or purchasing real estate, with the status of today’s ‘buyer’s market’ economy, knowing the ins and outs of real estate appraisals could be valuable information to possess.
How long does an appraisal take?
After research was conducted and reported amongst a variety of appraisers in the united states, the typical time reported for an standard residential appraisal, was approximately twenty-five to thirty hours. According to the USPAP regulations, “in developing a real estate appraisal, an appraiser must collect, verify and analyze information necessary for credible assignment results.”
The particular verification of information collected can take between three to nine hours, thereafter. To verify credibility within the real estate world of appraisals, means, to determine accuracy for those findings. This also means that the inspector must at least drive by the property, if not examine it completely. All other information is often found online via state and city records, as well as other documentations. Continue reading
Step 1: Check Your State’s Requirements
Each state has their own Appraisal Regulatory Board that administers and regulates the licensing and certification of appraisers. For the most part, the pre-requisites should be fairly uniform as they are set by the Appraisal Qualifications Board or AQB of the Appraisal Foundation.
As of January 1, 2008, to become a licensed residential appraiser you will need:
- 2,000 experience hours
- 90 education hours
- pass the exam
To become a Certified Residential Appraiser, you will need:
- 2,500 experience hours
- 120 education hours
- pass the exam
To become a Certified General Appraisal, you will need:
- 3,000 experience hours
- 180 education hours
- pass the exam
Marketing your products and services on the internet is an effective way to promote your business. These days almost every developed and developing country has the knowledge of internet and computer. Everyone knows that internet is the best source of information, no matter what the client is searching for. The client has to just type the right keyword to get the essential and the entire information about the products and the services. If you are capable enough to fulfill their requirements, they will surely turn to you for your products and services. Here are a few tips by which the real estate appraiser can promote its services:
- SEO (Search Engine Optimization): SEO helps to improve the quality and quantity of web traffic thereby improving your ranking in major search engines like Google, Yahoo etc. The target audience reaches your website through these search engines and gets converted to a potential customer. However, you need to put in the right keywords in your website like “Real Estate Appraisers” or “Real Estate Appraisal Services” etc. These key phrases are possibly used by the clients searching for appraiser services.
- Appraiser Video Marketing: This method for real estate appraisal services speaks more about your appraiser services offered. Video marketing is been popular from several years and this technique of marketing has created a good influence on the clients. Viewers see the video and understand things better. Continue reading
Real estate is without doubt an ever evolving sector. Its dynamics are changing continuously for both purchase and sale of property. Besides, there are a number of refinance options in the market. All these factors have contributed to an ever increasing demand for trained and certified valuators and appraisers of real estate. Since the guidelines for these professions are much more stringent in 2008, there are new programs on offer at the Career Advancement Training School that will train allow both existing and aspiring appraisers to fulfill their professional development needs as well as requirements for obtaining license under the new laws.
The courses at Career Advancement Training School are both certificate courses and programs. These are designed to build the theoretical knowledge as well as skills that are required to build a career with a real estate company, bank, a financial institution, an insurance company or even for being self employed as an appraiser.
The Career Advancement Training School is situated in Claremore, Oklahoma. It has courses to obtain a trainee license for a new appraiser as well as to continue education towards licensing. These courses all require the student to attend in person. The duration varies according to the course objective and content, from seven to thirty hours. Some of these courses and details of content covered by them are as follows:
Market Analysis And High And Best Use is a course meant to develop analytical skills in the appraisers and teach them about various tools that enable evaluation of the present market conditions according to the observed behaviour of a buyer and a seller. Continue reading
When you have the perfect home picked out and you know this is the home you want, your lender will require you to have an appraisal upon the request to use the home as security for a loan. A real estate appraisal will help in establishing a property’s market value, the sales price it would probably bring the seller, if offered in an open and competitive real estate market.
The reason the lender requires the real estate appraisal is because they want to ensure that the property would sell for at least the amount of money you require for your loan. Simply put, if the lender should ever have to foreclose, they want to ensure they would be able to get their moneys worth.
A real estate appraisal is not to be confused with a comparative market analysis (CMA). Real estate agents commonly use a CMA as a tool to determine a realistic asking price for home sellers. Although, an experienced agent may come extremely close to an appraisal price with the CMA, an real estate appraisal’s report include a lot more detailed information, not to mention the fact that it is the only evaluation report a bank will accept when making the decision of whether or not to loan money.
When having a home appraised for this purpose you should have an appraiser that is an objective third party. The appraiser should have no financial or any other connection with either party involved. Continue reading
The following paragraphs summarize the work of Real Estate Appraiser experts who are completely familiar with all the aspects of Real Estate Appraising. Heed their advice to avoid any surprises.
Knowledge can give you a real advantage. To make sure you’re fully informed about Real Estate Appraisals, keep reading.
Are you thinking about purchasing a real estate property for personal use or as an investment? One Appraisal can make it or break it, so you’ll need to hire the services of a real estate investor. If you plan to finance your home through a bank or other lender, you’ll more than likely need to get the property appraised first. Banks and most lenders want to know the value of the home for your protection, as well as make sure that the home they are financing is worth the total amount that you take on the loan.
In most cases, the appraisal indicates that the home does indeed meet or exceed the asking price. In some cases however, the appraisal will come back saying that the home is worth less than the selling price. If this is the case, the buyer normally has to either drop the deal or try to negotiate with the seller to get a price that meets the appraisal.
Hence, a real estate appraiser is very important. Even if you may not be financing your purchase through a lender or the bank, you should still make an effort to get the home appraised and find out the true value. It is important to make a point to find the best appraiser that you can afford. If you hire an appraiser who isn’t that experienced, you’ll pay for it later when you discover that the property isn’t worth what you paid for it. Continue reading
Commercial real estate appraisal is a combination of art and science. Knowledgeable appraisers gather and analyze data prior to making informed decisions about real estate value. The appraisal profession has developed a series of well-established analytical techniques; the cost approach, income approach and sales comparison approach. The most appropriate approaches depend upon the characteristics of the subject property.
The cost approach is considered most applicable for commercial real estate appraisals for relatively new properties and special-use properties. Commercial real estate appraisers are less likely to use the cost approach for older properties due to the difficulty of precisely calculating the amount of depreciation.
The income approach is considered most applicable for investment or income properties. Appraisers gather data regarding the actual income and expenses for the subject property, rental comparables, expense comparables, industry expense data, market occupancy, and rental market trends. The commercial real estate appraiser then estimates gross potential income, other income, effective gross income, operating expenses, and net operating income. Net operating income is converted into an indication of market value using a conversion factor termed the capitalization rate, using the following formula:
Market value = net operating income/capitalization rate. This process is termed direct capitalization.
The income approach can also be calculated using a discounted cash flow analysis. Continue reading
Everyone involved in the sale of real estate has a vested interest in the results of a appraisal. The outcome affects the seller, the buyer, the lender, and even the realtor.
A too low valuation of the property by the appraiser could mean a seller must lower the asking price. For a lending officer, it could mean a lesser commission or none at all. A too high valuation means the buyer could be paying more than the property is worth. For the realtor, his/her commission could go higher or lower, which is based on the purchase/sell price of the real estate.
An appraiser, who should be licensed by the state, performs the property appraisal. It is best to hire someone local with years of full-time experience in order to get a more accurate appraisal. The appraiser and appraisal are governed by the minimum standards, published periodically in the Uniform Standard of Professional Appraisal Practice by the Appraisal Foundation. The Foundation is chartered by Congress.
The recent real estate bubble, unfortunately, brought problems for appraisers and many involved in real estate transactions. According to Realty Times in their April 2006 issue, appraisers have been routinely asked by lenders to inflate values to keep up with the volatile real estate market. One appraiser in San Diego quit and turned in his license to the state, after being fired three consecutive times for refusing to inflate his valuations. Now, appraisers across the United States are under a microscope from federal financial regulators and Congress. Continue reading