What's the difference between appraisal and assessment?
First, these two types of home valuations are done for different purposes and within different time frames. Assessments are done on a town-wide basis usually for purposes of equitably levying taxes. Appraisals are conducted to determine a property’s value for other purposes.
Who owns an appraisal?
This is one of the trickiest and stickiest areas we deal with. The person (or company) ordering the appraisal owns it, and all the information contained in that report. We cannot release any of that information to anyone else - period - without written authorization from the organization or person who ordered the report.
What types of property do you provide appraisals for?
- Residential
- Multifamily
- Office
- Industrial
- Retail
- Shopping Center
- Lodging & Hospitality
- Senior & Assisted Living Housing
- Etc.
Why is it important to have a professional appraisal?
Because much private, corporate, and public wealth lies in real estate, the determination of its value is essential to the economic well-being of society. It is the job of the professional appraiser to determine these values by gathering, analyzing, and applying information pertinent to a property.
Unquestionably, the professional opinion of the appraiser, backed by extensive training and knowledge, influences the decisions of people who own, manage, sell, purchase, invest in, and lend money on the security of real estate. And because the appraiser is trained to be an impartial third party in the lending process, this professional serves as a vital "check in the system," protecting real estate buyers from overpaying for property as well as lenders from over-lending to buyers.
What are some of the reasons I would need an appraisal?
In our complex society, you may need and use the services of a professional real estate appraiser for a variety of reasons. Depending upon an appraiser's designation and qualifications, he or she can provide some or all of these services: Appraisals - Residential or Commercial; Counseling and Consulting; Evaluations; Expert Witness Testimony; Litigation Preparation; Feasibility Studies; Market Analysis; Market Rent & Trend Studies; Tax Assessment Review and Advice or Zoning Testimony.
What is the difference between a certified appraisal and a broker's market analysis or price opinion?
A certified appraisal is a formal, impartial estimate or opinion of value, usually written, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data. It is prepared as a result of a retainer, for reliance by identified parties, and for which the appraiser accepts responsibility. Only a state certified appraiser can provide a certified appraisal.
A comparative market analysis or broker's price opinion is an informal estimate of market value, based on comparable sales in the neighborhood, performed by a real estate agent or broker. The most important difference between a certified appraiser and broker or real estate sales agent is their motivation. A broker's typical goal is to obtain a listing and earn a commission.
Although most brokers and agents are honest some might tell you what they think you want to hear. A certified appraiser is independent and has no axe to grind. They have no ulterior motives. Their only concern is to deliver a fair, accurate objective appraisal.
How long does an appraisal take?
The physical inspection of the real property being appraised can take from approximately 30 minutes for smaller homes to over 3 hours for estate size homes or commercial properties, depending upon the size and complexity involved. After the initial inspection of the property the appraiser spends time touring through the neighborhood or area. The purpose of this tour is to 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. When the field work is finished, the appraiser completes the report at his office. The report can consist of a short form report (typically under ten pages) to a long narrative report which can sometimes exceed a hundred pages. A short form report usually takes between 4 to 12 hours to complete. A narrative report can take weeks or sometimes even months, depending upon the complexity of the assignment.
How can I speed up the appraisal process?
The appraisal process is an orderly and concise method of reaching an estimate of value. The process has six major steps which include: definition of the problem, preliminary survey and appraisal plan, data collection and analysis, application of the three approaches to value (sales approach, cost approach and income approach), reconciliations of value indications, final estimate of defined value. This process assists the appraiser in reaching a sound conclusion. The major phase of this process involves the application of the three approaches to value. The three approaches are reconciled and the value via most applicable approach, in the opinion of the appraiser, is selected as the final estimate of value. In most residential appraisals, particularly those of single or two family dwellings, the direct sales comparison or market approach best reflects the actions of buyers and sellers and is the most convincing and defendable approach to value.
You can speed up this process by providing: A survey of the house and property; a deed or title report showing the legal description; a recent tax bill; a list of personal property to be sold with the house if applicable; a copy of the original plans & specifications; the date and purchase price you paid when you purchased the property; a list of recent improvements & cost as well as any other information you feel may be pertinent.
Where does an appraiser get the information needed to complete an appraisal?
The appraiser gets his or her information from a wide variety of sources, including the local Multiple Listing Service, local tax assessors records, local real estate professionals, county courthouse records, private public record data vendors, interviews with sellers and buyers, appraisal data co-operatives and his or her own personal knowledge or office files from previous appraisals. The quality and reliability of each piece of information is considered by the appraiser.
What does the appraiser look for?
Typically, an appraiser needs to document the condition of the property, both inside and out, from the layout and features to degree of modernization including any updates as well as the overall quality of construction. This information will help to assist the appraiser throughout the valuation and comparison process.
The appraiser estimates the square footage (GLA - gross living area), by measuring the exterior of the home. Non-living areas, such as garages or covered porches, aren't included in GLA, but are accounted for and considered in value separately. Finished basements are also calculated separately from the above-ground GLA. The local market will dictate the contributory value of the finished basement, which can be influenced by governmental regulations, the degree of modernization, the quality of the finish, and other factors.
The appraiser will generally consider only permanent fixtures and real property. Because many above-ground swimming pools and small sheds are not permanent structures, they typically usually aren't included in the valuation. Depending on the specific installation process and local custom, however, an above ground pool or small shed might be considered part of the real property.
If my appraisal comes out higher than my tax value, could my real estate taxes go up?
Absolutely not!. The appraiser is required to maintain confidentiality with the client, which would typically be you (if you undertook the appraisal) or the bank (in a mortgage related appraisal), not the local tax authorities.
What are my rights?
Under the Equal Credit Opportunity Act, your lender must provide you with a copy of the appraisal report upon your written request. If you are dissatisfied with any information contained in your appraisal report, you should contact your lender immediately.
KL Appraisal Services, Inc. was founded with the goal of providing the highest quality real estate valuations in the appraisal industry while developing good business relationships with our client base. Our three-fold objective has always been quality services, prompt turn-around times and communication with our clients. We have established an outstanding reputation for this through knowledge, experience and integrity. Our investment in training and technology has helped our customers greatly reduce their workload by offering on-line appraisal ordering, coupled with automatic electronic delivery of the final product.
All appraisals and valuations are completed under the highest industry and ethical standards including Uniform Standards of Professional Appraisal Practice (USPAP) and nationally recognized appraisal guidelines. Our staff includes both Certified General Appraisers and Licensed Residential Appraisers, all licensed or certified by the State of California. We are also on the HUD approved roster for FHA case work and are members of the Pacific West Association of Realtors and FREA.
Is my privacy protected?
KL Appraisal respects and values your privacy and is dedicated to maintaining your privacy with respect to any information you provide concerning your interaction with our web site. KL Appraisal takes every precaution to protect your information and all such information is restricted in a secure environment.
What credit cards do you accept?
KL Appraisal accepts customer orders via PayPal - Visa, Master Card, Discover, American Express, and debit cards with the Visa and Master Card logo. We accept credit cards from around the world in any currency.
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