General Questions
1. What should I do to prepare for the appraisal?
There is usually no need to make any special preparations for the appraisal. A copy of a survey is helpful in many cases, and you may want to make a list of improvements that you have made to the property recently, or a list of other items that you think may have an impact on the value.
2. How long will it take for the appraiser to inspect the property?
It usually takes 30 minutes to an hour. Larger homes and complex properties can take longer while smaller homes may take less time.
3. What will the appraiser do while at the property?
Different types of appraisals have different requirements, but generally, the appraiser will inspect the property similar to the way a potential buyer would. The neighborhood and surrounding properties will be observed, quality of construction and condition of the property will be noted, significant features such as room count, bathrooms, garages, and gross living area will be determined and recorded, and photos will be taken.
4. What does the appraiser do after the inspection?
The appraiser will then conduct research and analysis necessary to develop a credible estimate of value, and prepare a report. This must all be done in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).
5. What is USPAP?
The Uniform Standards of Professional Appraisal Practice (USPAP) are the generally accepted standards for professional appraisal practice in North America. USPAP contains standards for all types of appraisal services. It is a document which is published by The Appraisal Foundation, and is updated every two years.
6. Will I get a copy of the appraisal report?
The results of the appraisal and the appraisal report must be treated confidentially and are usually only provided to the client. A borrower may have paid for the appraisal, and had significant contact with the appraiser, but the client in this case is the lender, so the appraiser should only provide this information to the lender. Usually, the lender will provide a copy of the report to the borrower.
7. What can I do if I disagree with the appraiser’s value?
If you are the client, feel free to contact the appraiser directly to discuss any concerns you may have. Otherwise, get in touch with the client (lender) to find out if they have a procedure which must be followed. Most concerns in this case must be funneled through the client. In either case, you are more likely to be successful if you focus on factual market data, such as a comparable sale which is similar to your home, rather than on opinions.
8. How much will the appraisal cost?
Appraisal fees are based on the complexity and estimated time it will take to complete the assignment. Give us a call, and provide us with information such as the property address, and intended use and users of the appraisal so we can provide a fee quote.
Relocation Questions
1. How much experience have you had with the Worldwide ERC® relocation appraisal report?
We have been performing relocation appraisal reports on the ERC forms since 1993.
2. Are you familiar with my neighborhood?
As long time Charlotte residents with many years of appraisal experience, we are familiar with just about every neighborhood in our service area. If we haven’t performed an appraisal there recently, we will become experts on the neighborhood through the appraisal process.
3. How are relocation appraisals different from other appraisals?
Many appraisals are performed for lenders in order to substantiate the value of collateral for a loan. They are often performed after a buyer and seller have agreed on a sales price. The result is an estimate of Market Value. Relocation appraisals are performed prior to the sale, and represent the appraiser’s best estimate of what the property will sell for within a specified time frame, usually 90 to 120 days. The relocation appraiser must analyze several factors such as supply and demand, absorption rates, competing listings, and seasonal fluctuations in real estate sales activity. The result in this case is known as the Anticipated Sales Price. The Anticipated Sales Price is usually different from Market Value.
4. Can you explain the relocation appraisal process?
The process may vary among different employers, but generally, two appraisals are ordered. If there is less than a 5% difference between the two estimates of the Anticipated Sales Price, the employee will be offered the average of the two appraisals. If there is more than a 5% difference, some information may be shared with the appraisers to see if they believe that any changes to their appraisals are justified which may bring the values within the 5% spread. If there is still more than a 5% difference, a third appraisal is ordered to help guide the employer toward a fair offer to make for the property.
5. What can I (the employee) do to be a part of this process?
It is often helpful if you can provide the appraiser with a survey of the property, a list of recent improvements that have been made or a list of factors which influenced you when you purchase the home. You may also have some knowledge about some sales or listings in the neighborhood which you may share with the appraiser.