TruAccess Appraisals, Inc.

FAQ

FREQUENTLY ASKED QUESTIONS REGARDING APPRAISALS

What is a Real Estate Appraisal?
As defined in USPAP, an appraisal is an estimate of value. An appraisal includes a description of the property under consideration, the appraiser's opinion of the property's condition, its utility for a given purpose, and/or its probable monetary value on the open market.

When should an Appraisal be conducted?
An appraisal could be conducted at any time. It is recommended to be done prior to listing your property for sale in order to achieve fair market value or to at least be aware of the neighboring market.

An appraisal is requested prior to the closing of the purchase of a property through the lending institution that will be liable for lending the funds. Without an appraisal the property may not go into closing.

When does someone need an Appraisal?
People in the United States buy, sell or refinance their property. Most, if not all, of these transactions include a simple appraisal. It is part of a real estate transaction. ''Let's bring in the expert and make sure we're not spending too much on this property.''

But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, independent real estate professional might come in handy?

Property Tax Challenges
It is a running joke that every one has a different perspective on what a house is worth. And it's the tax assessor that seems to always come in at the high end of the scale! Challenging the tax assessment has become an annual ritual in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the internet to support their claims, but have no real basis other than: ''It wasn't worth that much last year.''

A real estate appraiser can help in these situations. While it may not be economical to commission a full appraisal to lop a few hundred off your tax bill, often an appraiser can do a limited appraisal or neighborhood analysis for much less. These documents can carry a lot of weight when you appear before an appeals board.

Pre-Sale Decisions
Before someone decides to sell a home, there are several decisions to be made. First and foremost: ''How much should it sell for?'' But first there may be other equally important questions to ask: ''Would it be better to paint the entire house first?'' ''Should I put in that third bathroom?'' ''Should I complete my kitchen remodel?'' Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.

Appraisers can step in and help make these decisions. Unlike a Realtor, an appraiser has no vested interest in what amount the house sells for. His fee is based on his efforts, not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

Estate Planning, Liquidation or Divorce
The loss of a loved one is a difficult time in life. Likewise, a divorce can be a particularly traumatic experience. Sadly, these events are often complicated by difficult decisions regarding the disposition of an estate. Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues. Also, in most cases, a home or other real property makes up a disproportionate share of the total estate value.

Here too, an appraiser can help. Often the first step in fairly disposing of an estate is to understand its true value. Where property is involved, the appraiser can help determine the true value. At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they've received a fair deal.