What is an appraisal?
An appraisal is a professional appraiser's opinion of value. The preparation of an appraisal
involves research into appropriate market areas, the assembly and analysis of information
pertinent to a property, and the knowledge, experience, and professional judgement of the
appraiser.
What is the role of the appraiser?
The role of the appraiser is to provide objective, impartial, and unbiased opinions about
the value of real property--providing assistance to those who own, manage, sell, invest in
and/or lend money on the security of real estate.
What qualifications must appraisers have?
At minimum, all states require appraisers to be state licensed or certified in order to
provide appraisals to federally regulated lenders. However, appraisers who become
designated members of the Appraisal Institute have gone beyond these minimum
requirements. They have fulfilled rigorous educational and experience requirements and
must adhere to strict standards and a code of professional ethics. The Appraisal Institute
currently confers the MAI membership designation on those who are experienced in the
valuation of commercial, industrial, residential, and other types of properties. The SRA
membership designation is held by those who are experienced in the analysis and
valuation of residential real property.
How do well-credentialed appraisers add value to real estate transactions?
They bring knowledge, experience, impartiality, and trust to the transaction. In so doing,
they help their clients make sound decisions with regard to real property.
What are the components of an appraisal?
Most appraisals are reported in writing, although in certain circumstances, an appraiser
may provide an oral appraisal. A written appraisal report generally consists of a description
of the property and its locale, an analysis of the "highest and best use" of the property, an
analysis of sales of comparable properties "as near the subject property as possible," and
information regarding current real estate activity and/or market area trends.
What are the most important considerations in the valuation of real property?
The value indicated by recent sales of comparable properties, the current cost of
reproducing or replacing a building, and the value that the property's net earning power will
support are the most important considerations in the valuation of real property.
What is the range of services appraisers provide?
In addition to residential or commercial appraisals--and depending upon an appraiser's
designation and qualifications--he or she may be able to assist with the following:
"Can you check comps for me?"
"I want to know if I should order an appraisal."
That's a common question that is asked of appraisers every day. Of course nobody
involved in the mortgage industry wants to waste their time and money on loans that won't
"appraise out." Comp checks/value checks" (pre-appraisal market value opinions) may also
seem like good "Customer Service."
A quick comp search may miss the jewel in a neighborhood that's worth much more than
the average comparable nearby. Many times this situation isn't known until the property is
inspected. Also, a quick comp check may unfairly cause the loss of the loan for both the
lending agency and the borrower, so making a "comp check/value check" may be more of
a "Disservice" than "Customer Service!"
Laws and rules/regulations of the appraisal profession are governed by such as The
Uniform Standards of Professional Appraisal Practice (USPAP), which MAY put an
appraiser in violation of USPAP if he/she has provided an "estimate" of a home's value
prior to receiving an appraisal order. When Schweitzer Appraisals Inc provides a response
to an estimated value on an appraisal order, it will be a range of comparable sales, and is
in no way to be considered an appraisal or value of the subject. It is meant only as a guide
to assist you in deciding whether to proceed with the appraisal.
An appraisal is a professional appraiser's opinion of value. The preparation of an appraisal
involves research into appropriate market areas, the assembly and analysis of information
pertinent to a property, and the knowledge, experience, and professional judgement of the
appraiser.
What is the role of the appraiser?
The role of the appraiser is to provide objective, impartial, and unbiased opinions about
the value of real property--providing assistance to those who own, manage, sell, invest in
and/or lend money on the security of real estate.
What qualifications must appraisers have?
At minimum, all states require appraisers to be state licensed or certified in order to
provide appraisals to federally regulated lenders. However, appraisers who become
designated members of the Appraisal Institute have gone beyond these minimum
requirements. They have fulfilled rigorous educational and experience requirements and
must adhere to strict standards and a code of professional ethics. The Appraisal Institute
currently confers the MAI membership designation on those who are experienced in the
valuation of commercial, industrial, residential, and other types of properties. The SRA
membership designation is held by those who are experienced in the analysis and
valuation of residential real property.
How do well-credentialed appraisers add value to real estate transactions?
They bring knowledge, experience, impartiality, and trust to the transaction. In so doing,
they help their clients make sound decisions with regard to real property.
What are the components of an appraisal?
Most appraisals are reported in writing, although in certain circumstances, an appraiser
may provide an oral appraisal. A written appraisal report generally consists of a description
of the property and its locale, an analysis of the "highest and best use" of the property, an
analysis of sales of comparable properties "as near the subject property as possible," and
information regarding current real estate activity and/or market area trends.
What are the most important considerations in the valuation of real property?
The value indicated by recent sales of comparable properties, the current cost of
reproducing or replacing a building, and the value that the property's net earning power will
support are the most important considerations in the valuation of real property.
What is the range of services appraisers provide?
In addition to residential or commercial appraisals--and depending upon an appraiser's
designation and qualifications--he or she may be able to assist with the following:
- Estate planning and estate settlements
- Tax assessment review and advice
- Advice in eminent domain and condemnation property transactions
- Dispute resolution--including divorce, estate settlements, property partition suits,
foreclosures, and zoning issues - Feasibility studies
"Can you check comps for me?"
"I want to know if I should order an appraisal."
That's a common question that is asked of appraisers every day. Of course nobody
involved in the mortgage industry wants to waste their time and money on loans that won't
"appraise out." Comp checks/value checks" (pre-appraisal market value opinions) may also
seem like good "Customer Service."
A quick comp search may miss the jewel in a neighborhood that's worth much more than
the average comparable nearby. Many times this situation isn't known until the property is
inspected. Also, a quick comp check may unfairly cause the loss of the loan for both the
lending agency and the borrower, so making a "comp check/value check" may be more of
a "Disservice" than "Customer Service!"
Laws and rules/regulations of the appraisal profession are governed by such as The
Uniform Standards of Professional Appraisal Practice (USPAP), which MAY put an
appraiser in violation of USPAP if he/she has provided an "estimate" of a home's value
prior to receiving an appraisal order. When Schweitzer Appraisals Inc provides a response
to an estimated value on an appraisal order, it will be a range of comparable sales, and is
in no way to be considered an appraisal or value of the subject. It is meant only as a guide
to assist you in deciding whether to proceed with the appraisal.
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Schweitzer Appraisals, Inc.
Appraising real estate in Southern California since 1977
| Some Common Questions About Real Estate Appraisers and Appraisals |
