Property Taxes home • Property Tax Book • Property Tax Appeal Various Assessment Topics Various Political Topic
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Professional Real Estate Appraisals
An appraisal is an estimate of the value of a property. It is made by a qualified professional, called an appraiser. In most states, it is a licensed process which limits competition and keeps the fees high. Most financial institutions require an appraisal of the property you want to purchase. That financial institution will look at your credit history for obtaining a mortgage. The professional real estate appraisal is a critical tool in determining how much of a mortgage the bank or mortgage company will approve. After all, the land and property you are purchasing serves as collateral for the loan. The Value Of A Professional Real Estate Appraisal Because any system needs a reliable gauge, much private, corporate, and public wealth lies in real estate. Determining a reliable method of appraisal is essential to the economic well-being of society. It is the job of the professional appraiser to determine these values using comparable recent sales and analyzing, and applying information pertinent to a property. The valuation process is backed by extensive training and knowledge. The resultant valuation of that property influences the decisions of people who own, manage, sell, purchase, invest in, and lend money on the security of real estate. The real estate appraiser serves as an impartial third party in the lending process protecting real estate buyers from overpaying for property as well as lenders from over lending to buyers. Real property physical inspection being appraised can take from approximately fifteen minutes to several hours. Measurements, diagrams and foot notes on observation depend upon the size and complexity involved. After the initial inspection of the property the appraiser notes the neighborhood or area. Then the search for comparable sales (other properties that are similar to the property being appraised) that have sold within the last six months to a year or so begins. Valid comparable fall within a 3 month period. The appraiser completes the report at his office after the field work is finished. The report (URAR) can consist of a short form report or a long narrative report which can sometimes exceed a hundred pages. The long form for a simple real estate appraisal contains a lot of hacked terminology, which few people ever read. A short form report usually takes between two to six hours to complete. A narrative report if it is complex for commercial property can take weeks or sometimes even months. Purchasing Property Contingent on a Satisfactory Appraisal The purpose of an appraisal is to protect the lender from loaning too much money on a property. If the buyer is strapped for cash, a low appraisal could jeopardize the transaction. Most lenders will only approve a loan up to a certain percentage of its appraised value. Traditionally that percentage is 80 percent ($80,000 on a $100,000 property). If that property is appraised at $95,000, the lender will still try to provide a loan, but the buyer may have to come up with additional money to honor the contract for a $100,000 price. If the contract to buy the property was contingent on a satisfactory appraisal, the buyer may be able to negotiate the price down. The seller may cut the price to move forward with the transaction.
eBook Property Tax Pro 2.0 tutorial features all the guidelines you'll ever need to use if you are to engage in an effective appeal. Most manuals only offer home appraisal tips. Ours offers real life nuts and bolts examples, easy to use worksheets and how to guidelines and appropriate value ranges. We will show you how to apply the proper values using easy to understand arithmetic. We show you how to put it all together step-by-step. Download the complete package immediately after you order! House appraisal forms provided FREE with eBook download! Click above to order your copy of the book, "Property Tax Pro 2.0"
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