Frequently Asked Questions

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Appraisers are supposed to charge a reasonable and customary fee.

Reports costing more than $400 to $800 depending on Appraisal Management Company Fees either better be complex or have additional requirements.

It shouldn't take more than 24 to 48 hours after inspection, and Inspections are typically done asap.

Appraisers who get completely surprised at inspection, were not prepared and/or didn't ask the right questions in setting up the appointment of inspection.

 A frequent myth is that anyone can use the report.  There are only a few instances where the client can be changed. 

Typically, if you change the lender, you will have to get a new report, now you can inform the lender of the AMC and Appraiser who did your last report, and if we get a repeat order, there is an automatic discount, as some of the prior report work can be utilized, thus decreasing the amount of time we have to spend.

An appraiser performs an evaluation that leads to an opinion of value. The appraiser must use a several "approaches," typically three, to come to the estimation of value. One of the methods (however frequently left out by appraisers) in use is the Cost Approach, which evaluates what it would cost to replace the improvements to the property, minus age and physical deterioration, adding the land value. Another of the approaches is the Sales Comparison Approach - which deals with making a comparison to other similar properties within a close proximity which have recently sold. Generally speaking, the Sales Comparison Approach is the most accurate indicator of value of a residental property. The third approach is the Income Approach, which is an important method (frequently left out) in appraising income producing properties - it involves estimating what an investor would pay based on the income produced by the property, and basically, if there are rentals in the subject area, how is the income approach not applicable? and if there is Land Sales in the Area how is the Cost Approach not applicable?  ALL reports we develop have all applicable methods.

 Market Value is defined as:

The most probable price which a property should bring in a competitive and open market under the conditions requisite for a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.  Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

I am sorry, but I cannot even tell you the color of your home, even if we go stand in the middle of the public street, you are not my client.

Appraisers have similar legal constraints as attorney's however usually cost less.

If the Homeowner IS the Client, the the appraiser, should have a pretty good idea by the time they do their field work, usually the second of three periods of work.

 I wouldn't/don't know yet, and couldn't say unless you are the defined client anyway.

The Appraiser is not supposed to let the purchase price influence their opinion of Market Value.  So not until after the report is near complete, should the purchase contract/price be even reviewed and commented on if and when reviewed.

 Appraisers utilize the Most Recent Sales Data based on the Subject attributes (Site, Improvements and Condition) as well as the Effective Date of the report.  Since there is no Identical comparable sale, the appraiser typically utilizes the most similar, with some that are slightly superior and some that are slightly inferior.

Typically most want a Current Market Value.

Typically, if you do not add functionality, or more living area, bedrooms, bathrooms etc... the only things left are to either maintain or update what you already have.  Basically, all improvements depreciated, so maintenance is important.

Poor maintenance and/or removal of functional utility can cause the opposite. Also see External Influences.

 External Influence is any External (not on the subject site) trait that either creates positive (New public transit) or negative (New sewage plant) nearby influence.

Yes, except for, to the client....

Appraisers have responsibility to the client, however only about things related to the Real Property.

Typically, most other appraiser reports have only the minimum number (4-5) of Sales and Active listings included (which is 3 sales and 1 to 2 active/pending listings usually).

In our reports, we never have less than Six (3 to 4+ sales and 2+ Active/Pending listings) and sometimes up to Fifteen  in complex situations.

One common myth is that all markets are the same, and always track with the larger market. Not all markets are the same, Since the start of the pandemic, Rural and Suburban Markets have seen increases in some areas over past year and many in the past two years.  City areas have seen some of the largest recent decreases, which is due to the number of people working remotely now.  Appraisals are required to include the Market Conditions Addendum (aka MC), which reports the Supply and Demand traits of the Local Market area.

UAD formatting is Multiple Encoded Fields on a Report. Location, View, Basement and Garage are examples shown as combined sub-fields. Another example frequently misunderstood is Baths, a 3 Full and 1 Half baths home is reported as 3.1  not 3.5  and a 3 Full and 2 Half bath is reported as 3.2  All reports typically utilize this format and include the definitions therein.

An appraisal review (form 2000-field review) has two sections, the first refers to the accuracy of the data reported, if the opinion of market value in the appraisal under review is accurate, and if not provide a brief summary.

The second section is similar to the Market Comparison Approach with alternate sales data.

Although, the real problem is when enough fields of a report have errors, it's credibility becomes the question; if there are so many errors, can anything be relied upon?  A report that is considered not credible, should not be relied upon, thus a New replacement report should be ordered.