Magnolia Texas Real Estate Appraisals

Though a majority of the appraiser’s processes in determining a conclusion of value are done from their place of work, the appraiser’s first step in the valuation process is describing the problem, or scope of work pertaining to the home being valued. The appraiser will generally consider only permanent fixtures and real property. This knowledge will help to assist a property appraiser throughout the valuing and comparison process. To calculate the gross living area of a home, an appraiser will usually take measurements from the exterior initially. This permits him or her to survey the exterior of the house and decide what is to be included in the gross living area. Once he or she has verified the outside measurements, they will then enter the property to measure garage space and any second level gross living area. It’s vital that a home appraiser accurately measures and removes any non-living areas to ensure that the GLA is accurate.

An appraisal report is an extensively more thorough analysis of the aspects that impact real estate values. Unlike a real estate agent, a property appraiser is obligated by licensing laws to have no interest tied to the sale of a house and their fee for services cannot be contingent upon the value of the home. A professional appraisal report can only be performed by the appraiser with professional state certifications. A CMA or broker’s price opinion is an less detailed estimate of market value, derived from comparable home sales in the market area, carried out by a agent or broker. The biggest aspect in realizing the difference between the two is the motives for each professional. An agent’s typical goal is to sign a property listing and earn a commission. This can create a professional conflict whereby a broker could tell a client what they want to hear just to land a listing. A professional appraiser is unconcerned with the listing and not earning a commission on the property sale. Their sole responsibility is to complete a equitable, reasonable and impartial appraisal.

The Government Sponsored Enterprises (GSEs) require that an appraiser review the sales agreement and a property appraiser must declare review of the sales agreement on the appraisal report. An appraiser reviews the stipulations of the sales contract and compares them with what is typical in the market. The sales agreement has data such as the rate of interest, the amount put down, seller concessions or other personal property items that may need to be included in the sale. A property appraiser will also verify that the homebuyer recorded on the sales contract matches the buyer recorded for the appraisal.