American Castle and Land Co.
Define the term "Appraisal" Define the term "Appraisal" (See list of FAQ's)An appraisal report is an evaluation that concludes with an opinion of value. The real estate appraiser must use a several "approaches," typically three, to come to the estimation of market value. One of the methods in use is the Cost Approach, which is what it would cost to replace the improvements to the home, less the age and physical dilapidation, adding the land value. The most common approach in finding the likely sales price of a house is the Sales Comparison Approach which involves making a comparison to comparable properties close by. Being the most commonly used approach, the Sales Comparison Approach tends to be the most precise and best indicator of market value for a house. The third approach is the Income Approach, which is the best method in appraising income producing properties - it involves estimating what an investor would pay based on the capital generated by the property.Describe what an appraiser does (See list of FAQ's)An appraiser generates a professional, unbiased opinion of market value, to be used in making real estate transactions. Appraisers summarize their professional investigation in appraisal reports.What are the reasons a person would need your services? (See list of FAQ's)There are a lot of reasons to order an appraisal with the usual reason being real estate and mortgage transactions. Some other reasons for ordering an appraisal include:
What is the difference between an appraisal and a home inspection? (See list of FAQ's)The appraiser is not a home inspector and he or she does not do a complete home inspection. An inspection is a third-party investigation of the available structure and appliances of a house, from the top to the bottom. Commonly, a home inspection report will evaluate the amenities and the requirements of the property: air conditioning (weather permitting), electrical systems, the condition of the heating system, the plumbing; then the structural capacity of the home such as the attic, exposed insulation, walls, floors, ceilings, windows, then the foundation, basement and other visible structures.My agent performed a CMA for me. Is that the same as an appraisal? (See list of FAQ's)Simply put, it's like comparing broadband and dial-up. What the CMA depends on are superficial trends. An appraisal relies on comparable sales that can be verified by public record. Area and building values are also precedent in an appraisal. A CMA delivers a "ball park figure." An appraisal delivers a defensible and carefully documented opinion of value.But the largest differentiator is who's behind the report. A CMA is created by a real estate agent who may or may not be trained in technical valuation concepts or even have a handle on market trends. The appraisal is produce by a licensed, certified professional who makes a living out of valuing properties. Further, the appraiser is an independent voice, with no conditional interest in the value conclusion, unlike the agent, who gets a commission based upon the value of the home. What's in an appraisal report? (See list of FAQ's)The main objective of an appraisal document is to give a value opinion, and depending on the scope of the report, you'll usually see the following:
Once the report has been delivered, what guarantee is there that the final number is valid? (See list of FAQ's)In communicating an appraisal report, each appraiser must ensure the following:
Who hires American Castle and Land Co. Kevin Bruechert, Texas Real Estate Appraiser and Realtor (See list of FAQ's)Most of the time, appraisers are called upon by lenders to estimate the value of real estate involved in a loan transaction - to make sure the house is truly adequate collateral for the loan. Appraisers also provide opinions for legal settlements, tax matters and investment decisions.Where does American Castle and Land Co. get the data used to estimate values in Williamson County or other areas? (See list of FAQ's)One of the main things an appraiser does is to collect data. Data can be described as either Specific or General. Specific data is taken from the property itself; Location, condition, amenities, size and other specifics are gathered by the appraiser while on site.General data is collected from a many places. Local Multiple Listing Services (MLS) have data on recently sold homes that might be used as comparables. Tax records and other courthouse documents verify actual sales prices in a market. Flood zone data is retrieved from FEMA data outlets, such as a la mode's InterFlood service. And most importantly, the appraiser assimilates general data from his or her collective knowledge gained from creating appraisals for other properties in the same market. Why should I hire a licensed appraiser? (See list of FAQ's)Any time the value of your home or other real property is being used to make a significant financial decision, an appraisal helps. For those selling a home, you'll want to determine a price that gets you the most profit but doesn't leave your home on the market too long; an appraisal can help with that. If you're buying, it makes sure you don't overpay. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. Simply put, a house is often the single, largest financial asset anybody owns. Knowing its true value is essential to making the right financial decisions.What exactly is PMI and how can I get rid of it? (See list of FAQ's)PMI is an acronym for Private Mortgage Insurance. It takes care of the lender in case a borrower defaults on the loan and the value of the home is less than the balance of the loan. Once you can prove the amount you owe on your home is less than 80% of the home's market value, you can make a case to your lender to drop the PMI.
Do you need anything from the homeowner in advance? (See list of FAQ's)We start with an inspection of the property. What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general condition of its amenities. On the home's interior, make sure it is clutter free and that we can access things like furnaces and water heaters. On the outside, trim any bushes so we can be free to get an accurate measurement of outside walls.The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
How does an appraiser define "Market Value"? (See list of FAQ's)In real estate appraising, Market Value is commonly defined as:
Who has rights to the appraisal report? (See list of FAQ's)In most real estate transactions, the appraisal is ordered by the lender. Even though it's the buyer that eventually pays for the report, the lender is the intended user. The buyer is certainly entitled to a copy of the report - it's usually bundled with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender.This rule doesn't apply when a home owner engages an appraiser directly. In these scenarios, the appraiser may state how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not noted otherwise, the home owner can use the appraisal for any purpose. I want to get more for my house. Where should I spend money renovating? (See list of FAQ's)Like all things real estate, this is dependent on a home's location. For example, if you live in a cold region, insulated windows can be a real plus. But they aren't as attractive in a warm-weather climate.No matter where you go, however, renovating a kitchen is almost always a safe move. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms were second, returning 85%. Adding bedrooms and baths can also help the value of your home as long as your home doesn't then become atypical for your neighborhood in terms of size. |
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