Importance of Real Estate Appraisal and the Appraiser

A real estate appraisal is needed in ascertaining the value of a property. This is a service that ensures that the price of the property will suit the amount it will be paid with. It should not be confused with a house inspection or a CMA (comparative market analysis). An inspection is a detailed scrutiny of the property while a real estate appraisal delivers information on only the apparent damages observed.
A real estate appraisal can be initially performed by the seller through commercially-available softwares and online appraisal forms. This may help in grasping the process of real estate appraisal. An individual not certified to perform real estate appraisal may find it a bit technical. These tools come in handy to strike out this obstacle.
A licensed individual carrying out this estimation of a property's value is called an appraiser. Like a real estate agent, a top appraiser must be singled-out from a crowd. It is a must to know if your appraiser knows the area and property they will deal with. Availability of data sources appropriate for the service is also to be checked. Aside from having access to MLS (Multiple Listing Service), a licensed appraiser is also expected to have public records data. This data bank enables the appraiser to get hold of updated sales and aid in comparing available properties. An appraiser is adept with the collecting, organizing and verifying data. According to Janet Wickwell, a broker and writer of articles dealing with real estate dilemmas, "The appraiser should be an objective third party, someone who has no financial or other connection to any person involved in the transaction." This is to ensure the accuracy or unbiasedness of the real estate appraisal report.

As mentioned earlier regarding a real estate appraisal confused with a house inspection, detailed inspection is not an appraiser's forte. An appraiser only forms opinion while the inspector reports damages. So, appraisers are not to be relied on if one is trying to thoroughly assess the condition of the property.

There is no specific formula used by appraisers in coming up with a real estate appraisal report. A consolidated study of various aspects of the real estate is made. The most common features explored by an appraiser is the property's location, market trends, its size, availability of transportation, neighborhood, nearness to amenities i.e., school, hospital, bank, etc., and its construction quality.

According to RealtyBaron.com, an appraisal report is a detailed report which usually contains the following:

1. Details about the subject property, along with side-by-side comparisons of three similar properties.
2. A description and evaluation of the overall real estate market in the area.
3. Statements about issues the appraiser feels are harmful to value or resale, such as poor access to the property.
4. Notations about seriously flawed characteristics, such as a crumbling foundation.
5. An estimate of the average sales time for the property.
6. What type of area the home is in (development, stand alone acreage, etc.).

Oftentimes, the appraiser spots problems that will consequently project a lower appraisal. This low appraisal is the product of those damages left unrepaired, pet odor, pests, etc. It is for you to decide if those matters will not be resolved anymore or you just don't want to spend any more dimes on them. Then, the seller may either lower the property's price or treat the appraisal like a doctor's diagnosis. How's this? Ask for another appraiser's opinion. But if your other appraiser's report still resulted with the same low value, that's another story.