Today’s real estate appraisals can be very expensive, however you need to know how much your home and property is worth. Having a real estate appraisal is a good idea when you’re about ready to sell your property or after you have had work done on your property such as a renovation or remodeling because this increase the value of your house and property by a significant amount if the renovations or remodeling were extensive.
Real estate appraisals are done by a certified appraiser that will come to your home and appraised value of your house based on the structure of your house not on the contents of your house. So anything that has been done structurally to your house such as adding and bathroom or remodeling the kitchen or expanding the living room will increase the appraisal value of your property.
Without a real estate appraisal, you are just guessing at what the value of your home is and you could be coming up short with the asking price if you’re going to sell your house and property. The appraisal will give you an exact amount of the value of your house and property so that you know how much to ask when selling or for personal property tax reasons.
Real estate appraisals – are they worth it? Yes they are, in many circumstances, it is best to have an appraisal to make sure you’re getting the most out of your home and property when you go to sell it after your had renovations done.
Cheryl Criswell: I am also a registered builder, and build 2 spec houses a year for the market. I also provide project management for those wanting to be their own builder. For more information got to http://www.renovatingreferral.com Find out how this website can find the best contractor, project manager, or remodeler for you and your project.
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Real estate appraisals are totally subjective and often are not an accurate way to determine the value of a property in some markets. Since the recent sharp decline of property values and the new loan guidelines by lenders, not even the most professional appraiser can any longer say with absolute certainty what a property is worth. Real estate appraisers can and will give a subjective value for what a property should be worth, but even these numbers are open to scrutiny.
Because of infrequent sales, the offering prices of homes in some areas of the country are sinking faster than homes are selling. So anyone looking at comparable sales is seeing sales from months before that traded well above what a similar home can be bought for currently. This phenomenon occurs when home sellers become desperate to sell and believe that only the price of the home matters to a buyer. Unfortunately, for other homeowners, this panic to sell brings down values throughout the neighborhood.
An appraiser will readily admit that his price estimate or appraised value of a home is an educated, but always subjective guess. In the final analysis, his strongest parameter for pricing a single family residence is a comparable sale in the same neighborhood. Unfortunately, these comparable sales can be skewed by a number of factors including distressed sales, seller concessions at closing that are not part of the public record, transfers for estate or tax purposes, realtor commissions included in the sales price, long periods between sales, and property exchanges that use a factious market value as a basis for the transfer.
I know an individual who recently sold his home for $ 405,000, which was well above fair market value of $ 340,000 for his neighborhood. At closing he paid a $ 24,300 realtor’s commission, gave the buyer a $ 15,000 seller’s concession at closing, included his new furniture which he just paid $ 16,700, and paid closing costs for the buyer of $ 5,800. His net on this transaction was $ 343,200. However, an appraiser will see $ 405,000 on the public record and if he used this value to determine the cost per square foot as a guideline, his appraisal would be too high for the next property. The appraiser will see that the property was sold through a realtor®, but he will not know about the seller concession or furniture which overvalue the sale by $ 31,700. Similar homes in this area were listed at the same time for $ 310,000 to $ 330,000 but hadn’t sold, so how much value should be placed in the $ 405,000 sale?
I recently received a call from an excited investor about a seller who was asking $ 200,000 for her property which, according to ten comparable sales, was worth $ 280,000. The investor had used a ½ mile radius and six months previous sales as his parameters. By simply adjusting the comparables to a ¼ mile radius and two months back, the comparables showed $ 212,000 as a fair market value. What a difference a ¼ mile and a few months make to the expected sales price or value of the property. Had the investor jumped at the “opportunity” to purchase the property below market value, he certainly would have suffered a loss when you include carrying, sales, and repair costs.
In summary, in this market, the way for an investor or homeowner to get the best estimate of what a property is worth is to start with the most stringent guidelines, specifically, one month previous sales and only those within ¼ mile of the subject property. Next the seller or buyer should look out ½ mile and back three months at actual sales to get comparable values. Most importantly, it is now imperative that buyers and sellers look at open listings on the MLS (Multiple Listing Service) or on Realtor.com and carefully check the sale by owner offerings in the neighborhood. Armed with this information, a buyer or seller can get a significantly better idea of FMV, even if it is not what he expects.
Dave Dinkel has over 35 years experience in real estate investing which has given him a unique perspective into the real estate market. Dave is the author of the best-selling e-courses http://www.fsbopowersellingsystem.com/ and many other e-courses for investors and homeowners.
Dave’s focus in the past few years is educating the public in a manner that doesn’t amount to paying for a master’s degree. His recent contribution to this end is the e-course “48 Ways to Create a Massive Buyers List” which can be seen at http://www.MakingaBuyersList.com.
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A real estate appraiser finds real estate comparable sales by using a database. This database is usually, the local MLS or multiple listing services. The MLS is a database is created and maintained by a Realtor association.
The MLS database consisted of specific data in regards to any home or parcel of land that is listed in this database. Normally, the information gets added to this database from Realtors when they sell the home. Other times Realtors or members of the association add homes that have not sold directly through the MLS database.
When the appraiser is determining the value of your home they will look for real estate comparable sales. I usually complete a minimum of three searches and on complex properties, I will usually complete up to five searches or more to make sure I’ve correctly identified the best sales.
I search for all homes that have sold within one year that are within one half mile from the subject. From this list, I will gather basic information about the comparable sales in the area. In this search it is important to leave the entire search criteria open (meaning not to select exact criteria to search for), as this will allow all homes to show, regardless of the data that was inputted into the MLS database. This is important, because, if you select specific criteria at this stage, you may miss several important sales in the area that are similar to your home. Once I’ve selected the most comparable homes to the subject, I will change the criteria to 1 mile from the subject and complete the process again.
After reviewing all of the sales, I will look at specific features of the subject, such as design, room count, bedroom count, basement, heat source, etc and I will specifically select criteria that will match the subject’s criteria. Usually, I will run another search on specifically on what has sold in the last three months that offer the most similar criteria to the subject.
Once I complete all of these searches, I will gather up all of the data and review all of the listings, pending sales, and closes sales. The sales will be separated to the most important criteria such as homes with the most similar square footage that support the immediate market area, homes with similar amenities and similar design.
The closes sales will be checked with public records to make sure the basic sales price and the information is similar. The Realtor will be called to check basic information. If I can locate four recent real estate comparables and two active listings or pending sales, these are the real estate comparable sales that I will use in the appraisal. This is the process a real estate appraiser will use to located and confirm comparable sales.
Would you like to learn more about real estate appraisals, or buying and selling your home click on http://increasehomevalue.org
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If you need to know the value of a piece of real estate anywhere from a month ago to a decade ago, it can be done. I’ll show you how it can be done. How it can benefit you or your clients. How an appraiser arrives at value even long after you have sold and moved away. As an experienced appraiser in Southern California with over 20 years experience I would like to share my real estate experience with you.
What is a historical appraisal? Really all appraisals are just a snap-shot of time. Most appraisals are for current market value. So the very day the appraiser comes out and inspects the property the value is valid on that date only and could become no longer valid the very next day. There could be an economic or natural disaster that could change the value overnight. With a historical appraisal the effective date is what the property was worth on that required date, anywhere from last month to 10 or more years ago.
What is the purpose of a historical appraisal? Many and varied reasons. Many accountants and financial planners need to determine the value of property held in estate when the owner dies. This is known as a “Date of Death” appraisal. The IRS will want a professional appraisal in the file to document the value as of that date. Attorneys use the historical appraisal to determine what assets belong to which party. For example let’s say a single person bought a home in 1985 but met and married current spouse in 1995 and separated in 2005. It would be important to know the fair market value on those dates for fair and equitable dissolution. The same would be true of business partners in a property or even family members that pooled financial resources but need to move on.
Are there limitations to what can be done? You would think if you had sold the property years ago and moved away that it could not be done. That’s not true. I recently appraised a property 10 years back, that at the time it was only 1/2 the size, was before the swimming pool, and the owner sold and moved out long ago. In this case an exterior “drive-by” appraisal was called for and the house was valued based on the previous size, minus the pool and without bothering the new owner. In this case both opposing appraisals came in very close to each other and settlement was that much easier.
A historical appraisal sometimes involves similar principles of New Construction Appraisals where only specifications on paper exist and the appraiser determines the value as if completed to your plans and specs. This is sometimes referred to as a Feasibility Study and used to determine if what you plan on building is worth what you expect it to be worth and what adjustments in the build will increase or decrease value.
In these more complicated retro-active or historical appraisals it is important to find an appraiser with years of experience in that market area. An appraiser with sufficient experience may have insight in this area before, during and after changes that have occurred over the last 20 years in that target market. Additionally there are certain appraisal formats that are acceptable for use and others that are in direct OREA violation.
Lastly in historic appraisals, the use of comparable data must all fall before the effective date of the appraisal. If your effective date is 1-17-94 all sales comparables must fall before that date, none after. If for example you needed to know the value of a property sometime around the Northridge earthquake, using sale comps before or after would have tremendous impact on that value.
If the appraisal is for court work we may be called on the witness stand to testify to our report and defend it against the opposing attorney and his witness. There are additional fees for this type of testimony. As a professional appraiser it’s my responsibility to be the best possible resource for my client.
If I can be of help to you I can be reached at activerain.com/cdiamond .
Appraiser/Author
Clifford Diamond, CREA
Searching for a Real Estate Property Appraiser, keep the following in mind:
There are many people who call themselves appraisers but who are not accredited and have no formal training. It is important to hire an appraiser who is accredited by a reputable valuation organization.Make sure the real estate property appraiser is licensed or certified by the state to perform real estate appraisals. Some states do not require licensing to perform real estate appraisals. It is not recommended to use the services of any appraiser who is not licensed or certified. Don’t be afraid to ask an appraiser for a copy of their license. Appraiser’s will readily provide this documentation.
Ask how much of their work is not done for lenders. A high number is a good indication that they are not simply spouting back predetermined values. If all their work is done for lenders, ask how many times they came in below the sale price. If the answer is never – find someone else. The law requires that appraisers remain impartial.
Real estate appraisers carry a professional designation. The most widely known industry designations are SRA (residential appraiser) and MAI (generally commercial appraiser) and SRPA (senior real property appraiser). These designations are issued by the Appraisal Institute. These designations demonstrate an appraiser’s commitment to continuing education and ethical standards.
Professional designation may or may not be a good test of quality but the Appraisal Institute designations of SRA, MAI and SRPA are deservedly the most respected in the profession. Many of the very best appraisers are designated. Unfortunately, a few poor appraisers are designated as well.
Knowledge is power, so arm yourself with knowledge before you search for your next Commercial Appraiser, Residential Appraiser, FHA Appraiser or VA Appraiser.
A good place to find your next Real Estate Property appraiser is AppraiserUniverse.com
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A real estate appraiser offers their services to evaluate property, land and dwellings, to determine the appropriate value of that property. In order to sell a property most people realize it is important to hire an appraiser. It is necessary for the mortgage company to know what the home is worth so they are not loaning more money than they can recover, and it is great information for the buyer to know that they are getting their moneys worth. But there are still a few other reasons that one might want to hire a real estate appraiser.
These reasons would include establishing value to buy insurance. If you are wanting additional insurance for flood or earthquake for example, it is important that the insurance company knows the value of your home. This is so you can receive the proper and fair amount given this type of disaster should happen in settling your insurance claims.
The obvious is to establish market value or to refinance your home. A refinance could make it possible to do necessary yet sometimes expensive repairs to your property. If you have enough equity in your home as founded by an appraisal, you’ll be able to make necessary improvements with ease.
You may want to hire a real estate appraiser if market values have decreased since your last property tax assessment. You can use an appraisal to dispute and reduce your property taxes.
To settle an estate and disperse money to heirs would be another reason this type of professional might be used. Also, in the case of divorce, knowing the market value of the home is valuable to know when dividing property.
If you find yourself in a situation that you could benefit from using a real estate appraiser, be sure that they are state licensed and certified.
For Appraiser Las Vegas, check into the Appraisal Associates of Nevada. There you will find a Las Vegas Appraiser that is sure to fit your needs. Heidi Ball is a freelance writer.
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What is PMI and how to get rid of it
Assuming a decent credit rating, any potential home buyer can secure a loan for a house. Why? Because these transactions are secured by a very valuable asset: the home itself. If a borrower defaults on a loan, the risk for the lender is often only the difference between the value of the home and the amount outstanding on the loan, less the amount it costs them to foreclose and resell the property. For this reason, lenders are very wary of lending more than a certain percentage of a homes value. Traditionally, this has been 80 percent. The cushion this provides the lender helps ensure that their losses from loan defaults are kept to a minimum.
In recent years, however, it has become increasingly more common to see home buyers using down payments of 10, 5 or even 0 percent. Naturally, loaning this much presents the lenders with a lot more risk. To offset this risk, these transactions often require Private Mortgage Insurance or PMI. This supplemental policy protects the lender in case a borrower defaults on the loan, and the value of the house is lower than the loan balance.
PMI has been a large money-maker for the mortgage lenders. The amount of the insurance often $ 40-$ 50 per month for a $ 100,000 house is commonly rolled into the mortgage payment. Given the size of the overall payment, this additional fee is often overlooked. Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80 percent threshold. This occurs naturally, of course, as the home owner pays down the principal on the loan. On a typical 30-year loan, however, it can take many years to reach that point.
Until recently lenders were under no obligation to tell home owners when they had reached a point where the PMI can be dropped. That all changed in 1999, when the Homeowners Protection Act took effect. In most cases, this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Savvy homeowners can get off the hook a little earlier. The law stipulates that, upon request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent!
It is important to note that this law only applies to home loans whether first time or refinances that closed after July, 1999. Also certain other conditions must be met, such as being current on the loan payments. Buyers that purchased before July 1999 can also have their PMI removed, but they must initiate the process and though the lender is under no obligation to do so, most will.
Of course, there is another way that home owners equity can reach beyond the 80/20 percent ratio. Many areas of the United States have seen significant gains in the value of real estate over the past decade. In fact, certain areas have seen appreciation levels of 100 percent or more. Even those people living in areas with more modest gains may find that the value of their property has quickly grown to the point where the amount of principal they owe on their loan is less than 80 percent of the homes current value. Again, in these cases, the lenders are under no legal obligation to remove the PMI. In most cases, however, as long as the home owner has been prompt on their loan payments and dont represent an exceptional risk, the lenders will agree to remove the extra fees.
The hardest thing for most home owners to know is just when does their home equity rise above this magical 20 percent point? A certified, licensed real estate appraiser can certainly help. It is an appraisers job to know the market dynamics of their area. They know when property values have risen or declined. Many appraisers offer specific services to help customers find the value of their homes and remove PMI payments. Faced with this data, the mortgage company will most often eliminate the PMI with little trouble. The savings from dropping the PMI pays for the appraisal in a matter of months. At which time, the home owner can enjoy the savings from that point on.
Assessment appeal services
Most localities determine your property tax burden based on an ad valorem assessment of the property’s value. Sometimes, as a property owner, you get an unwanted surprise in the mail telling you your taxes are going up, and sometimes it may seem as though your assessment is too high.
It is common knowledge that in many areas values are in a decline. It is possible that homeowners who have recently purchased their homes are being assessed above market value due to the declining property values in some areas. Of course every case is different and it is recommended you consult an appraiser or a local real estate professional for input on current market trends in your area.
Often, matters like this can be resolved with a phone call. However, if after discussing your assessment with your local taxing authority you still feel as though your property was overvalued, a professional, independent, third-party appraiser is often your best bet in proving your case. That’s where we come in. There are as many different procedures for appealing assessments as there are property taxing districts, so it’s important to enlist the help of a professional appraisal firm that’s experienced and trained in the ins and outs of your particular jurisdiction.
Please note: It makes sense to do your own research before determining whether to go forward with a property assessment appeal, especially before you make the decision to hire a professional appraiser. However, according to the Uniform Standards of Professional Appraisal Practice (USPAP), we are not allowed to take “shortcuts” — i.e., your research — and use it on its face as part of our independent evaluation. When you hire us for an assessment appeal, you’re commissioning an independent, third-party professional appraisal report. As such we do our own evaluation, beginning to end. If you’re right that your property has been overvalued, an independent report such as ours will be even more persuasive than any other evidence you can marshal on your own. But it depends on our ability to do the work independently.
Sometimes, you will have a hearing on your assessment appeal and will need for the appraiser you’ve hired to testify on your behalf. Be assured that at INFINITY APPRAISAL GROUP, LLC, we are able to professionally testify at appeal hearings. Browse our website to learn more about our qualifications, expertise and services offered.
Pablo Soto State Certified Residential Real Estate Appraiser in Florida RD6441.
Infinity Appraisal Group, LLC.
17049 NW 23 ST
Pembroke Pines, FL 33028
http://www.infinityappraisalgroup.com
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Tampa is a city where there is lots of water, sunshine and sand. But Tampa also is an community that’s alive with the arts, culture, and is serious about its professional sports. Tampa had a climate that everyone loves; it’s pleasant to have a outdoor adventure year round.
The city includes beautifully designed golf course that are open to public open during every season. The town includes a few of the finest professional sports team in the county. They include the 2003 Super Bowl Champs Tampa Bay Buccaneers and the 2007 Stanley Cups Champing Tampa Lighting. The city is also listed to host its fourth Super Bowl in 2009.
The Tampa landscape is highlighted by its modern Architectural. The city includes a blooming art district that’s features nightly art exhibits. It includes a Farmers Market that includes the state freshest home grown fruits and vegetables. Busch Gardens is home to one of the fastest most state of the art roller coasters.
The weather in Tampa is accented by warm sunshine and a nice cool bay breeze. This provides the perfect setting for living and leisure. Abundant, exotic plant life decorates throughout the area, filling the Tampa scenery with radiant colors and amazing scents. There are waterways that wrap around the city for many miles of coastline providing scenic lookouts. Tampa is home to numerous sea life including dolphins and manatees.
Tampa has a diverse culture that is represented by its thriving arts community. The U.S. Census Bureau recently named Tampa as one of the top five integrated, diverse urban area in the country.
It is centrally located on Florida’s West Coast making it easy it a short destination from anywhere in the state. Tampa is has an abundance of by state highways, a top rated airport and many sea ports for the ocean adventurer.
Find more resources about Tampa and real estate listings at Tampa Real Estate
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If you are serious about investing in real estate it is important that you understand the different tools that are available. These tools can give you important information about the properties you are considering making an investment in. One of the most important is the real estate appraisal. This can give you a good idea of a property’s value and can help you avoid sinking more money into a property than its actual value would indicate. Here is what you need to know about how real estate appraisals are determined.
Basic areas of a real estate appraisal
There are many different things that a real estate appraisal will detail. The following are some of the areas that an appraisal will detail. Each of these can be used to determine whether a real estate development opportunity is a worthwhile one.
Most will begin with details about a specific property. It will often include comparisons of three other properties which are similar to the one that you are considering investing in. These are known as comparables.
The details about the property will also include information on factors that may make a property less valuable. Some possible reasons for the devaluation of a property include poor access to the property. It is important for you to look at these items carefully since these can affect whether or not a property will be attractive to renters or buyers after you have developed it. There are some things that can be changed about a property but some negatives may be very difficult to overcome, and you may want to avoid properties that have a long list of negative features.
You should also look at the section that outlines any flaws or problems with the building or property’s condition. This can not only affect resale values it can also mean that you will end up sinking more money into a property than you want simply to make it usable by tenants or later purchasers.
You also want to make sure that you pay close attention to the average sales time for the property. This is important especially if you are planning to flip a property. A long sale time may end up affecting the amount of profit you can expect to earn on your investment.
What you need to remember
When looking at a real estate appraisal document, it may feel overwhelming. This is especially true if you are dealing with an appraisal that seems to have a lot of negative information. This is where it can be helpful to work with an experienced and trustworthy real estate agent who can help you analyze the data and determine whether a property will be good for development.
This determination may change depending on the kind of property you are interested in. For example, a commercial property may be impacted by different factors than a residential property would be. A commercial property may be a poor investment if it is located away from busy commercial centers whereas a residential property may not be as heavily affected by this factor. Only you will know whether or not you are willing to take on the risk that that property presents and choose to invest your money.
Justin Trapps is a Licenced Property Broker who writes about topics concerning Property Investment and development in the USA, To find out more about him visit his website www.us-properties-direct.com
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The two effective and successful marketing tools which are introduced in the year 2010 that the Real Estate Appraisers can enjoy the benefit of are Video Marketing and Becoming Trust Agent for Your Local Housing Market! Video Marketing has been quite effective and has shown positive results on almost all the businesses. It has created a great impact on the people. For instance, the “United Breaks Guitars” video was viewed for 6,987,422 till date. Most of the locals are searching for a reliable “Trust Agent” who will help them know about the changing housing market conditions as it is the largest part of your investments. Moreover, they find video much interesting.
Benefits of using video marketing:
The people who view the video know and understand you better as they are able to see you and eventually trust you before they ask for your services. They also consider you as a sensible local expert who can answer all their queries. Not only this, you are treated as the best evaluator. Also you provide all the essential information to attract target audience and you succeed in doing so as you are the real human like any normal person thereby eliminating the image of a dull, irritable appraiser when they watch your video.
Benefits of becoming a local appraiser trust agent:
In the year 2009, Chris Brogan and Julien Smith introduced “Trust Agents: Using The Web To Build Influence, Improve Reputation, And Earn Trust”! This revealed that it used to take several years to build the trust between the business and its clients. But now, the appraiser can build trust among its local and national customers in comparatively quite lesser time by simply posting a single blog along with market reviews and effective video of yours as an appraiser. Also by writing enticing content and dependable services which are other key factors for building trust in the relationship between the appraiser and the clients.
When you become a trust agent, you need to put in sincere efforts by offering valuable services and not just by promoting your business all the time. It is always best to offer reliable and unparalleled value to your clients and by doing so you will surely be asked for your services and you and your company will create an everlasting impact on them.
If you are an appraiser and new to video marketing, you will soon realize that it is easy and cheap. Actually, if you have some knowledge, you can start video marketing without investing anything, moreover, you do not have to run here and there to create videos as per the specifications laid down by Fannie Mae 1004 MC (Market Conditions) studies. After this, you need a pocket camcorder that costs around $ 100 to $ 180 which has pre-installed video editing software. This helps you to make quick and simple web videos which can be uploaded to your appraiser video blog.
Become Creative With Appraiser Video Marketing:
In order to create an impact on the viewers, these few points will help you create effective and influencing appraiser videos. Harris County Housing Stats Fourth Quarter 2009. Seattle Washington Appraiser Video From The Field. Houston Texas Appraiser Video Of The Week. Top 10 Most Memorable Dallas Texas Appraisal Assignments Of 2009. Top 10 Atlanta Georgia Subdivisions With The Most Home Sales. A day in the life of a Your Town real estate appraiser. Now you need to think about making videos for Pre-Listings, Estate Settlements and Divorce Appraisal Services. For the Pre-Listing Appraisal services, you can earn some extra income by uploading an effective online video for all who wish to sell by owner. Generate extra revenue by adding extra syndication! Or just use Video Marketing and attract your target customers to use your appraisal services by beating your competitors!
Bill Cobb is and has been a residential appraiser in the Louisiana Market for 18 years. Bill operates his own local appraiser blog as well as the national Real Estate Appraiser Tips blog. Bill builds Self Hosted WordPress Appraiser Video Blogs With Google Optimization And Incorporates The Big 3 In Social Media With The Setup. Find out more at http://www.appraisersblogsample.info/. Bill also teaches Appraiser Video Marketing techniques at [http://www.appraiservideomarketing.com/].
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