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Do you know the market value of your property? This information can be very useful to you, and not only if you decide to sell your house! The best way to get the facts straight: get a real estate appraisal.
Who to trust?
A real estate appraisal must be made objectively, without emotional attachment, and without pecuniary interest. Calling on an appraiser recognized by the Aipraiser in Kent, Washington or an appraiser who is a member of a professional association for the appraisal of real estate makes it possible to ensure an impartial and neutral opinion on a building.
The mission of the Aipraiser is to protect the public interest. It ensures the quality of the professional acts performed by its members:
· It guarantees their technical competence.
· It oversees their work by establishing standards on evaluation methods and techniques as well as the nature, content, and mode of communication of reports.
· He oversees their practice; among other things, it handles complaints from the public.
· He certifies that they hold professional liability insurance.
To find out if the appraiser you are thinking of mandating to appraise your home is a member of the Aipraiser or if he or she has been subject to a disciplinary sanction, consult.
The technical competence of appraisers with the title of Appraisal Institute of Washington, awarded by the Appraiser Institute of the United States, is deemed equivalent by the Aipraiser. However, this is not the case for the American Residential Appraiser members of this same private association.
Finally, remember that if the title of the chartered appraiser is indeed reserved only for members of the Aipraiser, in Kent, anyone can produce the nationwide property & appraisal services. If you decide to do business with a commercial real estate appraiser who is not approved by the Aipraiser, you must at least check that he has commercial liability insurance. In addition, it is important to retain the services of a person who has no interest in the building concerned in order to obtain a completely objective opinion on its value.
What to expect?
If you decide to have your property appraised, here is an overview of the main steps in the process.
1. The commercial real estate appraiser near me or his collaborator goes on-site and checks the dimensions of the house and the land. He takes pictures and observes the general condition of your property. If possible, he speaks with you to complete his data collection. This inspection tour usually lasts 45 to 60 minutes.
2. Based on the information gathered, the appraiser establishes the value of the property based on its location, land area, building dimensions, age, condition, equipment, etc.
3. The appraiser produces a written report. This report can be abbreviated or detailed, depending on the needs. The abridged report is a summary of the evaluation and is most often produced using a form with checkboxes. The detailed report, called "narrative", allows you to enter a complete description of the house. Whether the report is detailed or abbreviated, it must include 12 specific elements, including:
· Information relating to the building on the physical and legal levels.
· The purpose of the evaluation.
· A definition of the value sought.
· The date of the assessment.
· A statement of the reservations limiting the scope of the assessment.
· The appraiser's signature.
For a single-family home, a property appraisal typically costs $500 or more.
When is an appraisal worth the cost?
Beyond establishing the sale price of your home, there are a host of reasons that may motivate you to request a real estate appraisal. Here are a few:
· Allow the sharing of assets upon death or divorce.
· Resolve a disagreement with an insurer on the amount of protection needed or the amount of compensation following a claim.
· Obtain a mortgage loan or financing to carry out renovation or construction work.
· Contest the property tax (municipal taxes) or compensation offered on the sidelines of an expropriation.
In the context of a distribution of assets or expropriation, the intervention of an appraiser is essential.
In terms of home insurance or property taxation, the magnitude of the anticipated financial gain must first be assessed in a very rational manner before claiming a formal assessment.
You should also know that during a loan process, financial institutions usually appoint an appraiser themselves. On the other hand, if the lender agrees, it is in your best interest to contact an appraiser yourself. Why? Since you will have to pay for his services anyway, at least if you hire an appraiser yourself, you will be able to keep the report. A significant potential advantage is if you have to turn to another lender in the event of a refusal.
Thanks to Mr. Brian French, President of Aipraiser, for his contribution to the production of this advice capsule. Their firms of nationwide property and appraisal services of appraisers are members of Aipraiser recommended companies’ network.