Many homeowners attempt to determine the values of their real estate by looking at data collected on real estate websites that value a home based on data they have compiled through a number of different means. While these websites can be very convenient and easy to use, they can also be very inaccurate. Many times, real estate data collected from outdated and often unreliable resources can cause problems when trying to determine the value of a property in a specific community. These sites may have some value to the consumer in showing pricing trends for a particular area, but they are not a substitute for the services of a local real estate appraiser.
Professional real estate appraiser, who have completed hundreds of hours of appraisal training, can more accurately determine a property’s fair market value and take into account many variables that the website report does not. A professional appraiser will take into account ongoing economic development projects, surrounding neighborhoods and of course the school system of the area. Neighborhoods that are in the process of being renewed will not be judged correctly in a computer model or from someone who is not very familiar with the area. A local appraiser is aware of economic trends, renewal projects and the trends, whether up or down, in prices for that area.
While securing a professional real estate appraiser to correctly determine a property’s value can be crucial to value an estate or during divorce proceedings, or to satisfy a mortgage requirement, choosing an experienced local appraiser that understands the values in their market can determine the difference between a correct appraisal and a flawed appraisal. If an appraiser does not have a thorough knowledge of the area the property resides in, many very important variables that determine the value of a home can be omitted and can result in a bad appraisal.
With banks and other financial institutions now facing a large volume of homes in foreclosure in their portfolio, some have opted for real estate brokers to complete a BPO (Broker Price Opinion) instead of a professional appraiser. A BPO will more than likely be more accurate than an online report, but there is mixed opinion on how well a broker can assess value without the kind of training appraisers complete.
A BPO is less expensive than a professional appraisal report, however they are not as thorough. Somelenders do not even require a BPO include an interior inspection, which could uncover many factors in determining the value.
Appraiser must complete a state mandated course of training, then complete an apprenticeship under a licensed professional before they may value property on their own. A well trained professional appraiser will examine many variables of a particular property such as comparable properties sold recently in the neighborhood , square footage, number of bedrooms, the size of the lot, and price trends in the area for houses currently on the market.
An appraisal you receive from a professional appraiser will be thorough and spell out for you exactly all of the variables that were considered when arriving at the value.
Finding a competent, qualified appraiser in your town is not difficult. Ask your local bank for a referral or friends and family who have recently been involved in a real estate transaction. Search on the internet for local directory listings, many have reviews such as Yelp.
The value of your home is so important, make sure you have confidence you are receiving the fair price by using a professional appraiser.
