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Is an appraisal the
same thing as a home inspection?
NO.
An appraisal is not a home
inspection. A home inspection is an in-depth,
third-party evaluation of the accessible
structure and mechanical systems of a house.
The standard home inspector's report will
include an evaluation of the condition of the
home's heating system, central air conditioning
system (temperature permitting), interior
plumbing and electrical systems; the roof,
attic, and visible insulation; walls, ceilings,
floors, windows and doors; the foundation,
basement and visible structure. |
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Is an appraisal
the same thing as a Comparative Market Analysis
(CMA)?
NO. The CMA relies on
vague market trends. The appraisal relies
on specific, verifiable comparable sales.
The appraisal also looks for factors such as
condition, location and construction costs;
whereas a CMA delivers a "ball park figure."
An appraisal delivers a defensible and carefully
documented opinion of value arrived at after
following the Appraisal
Process. A CMA is crated by a real
estate agent, who may or may not have a vested
interest in the sale price of the house.
The appraisal is created by an unbiased,
third-party who is also a licensed, certified
professional.
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Who do appraisers work for?
Appraisers are usually contracted by lenders as
an unbiased, third-party to estimate the value
of real estate involved in a loan transaction.
Appraisers also provide opinions in litigation
cases, tax matters, investment decisions and
investment decisions. Please see our
We're here when you need us
section for ideas on how Residential Appraisal &
Associates can help you.
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Why do I need a professional
appraisal?
Knowledge is power and in
order to empower yourself to make the right
financial decisions, you need an up-to-date
accurate value of your single largest
investment, your home. If you are selling
your home, an appraisal helps you set the most
appropriate value. If you are buying a
home, it makes sure you don't overpay. If
you are engaged in either an estate settlement
or divorce, it ensures that property is divided
fairly.
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Who
owns the appraisal report?
As a general rule, the appraisal
report is owned by the person or
institution that orders it to be
done.
In most real estate
transactions, the appraisal is
ordered by the lender.
Even though the home buyer pays
for the report as part of the
closing costs, the lender
retains the right to use the
report or any information
contained within. The home
buyer is entitled to a copy of
the report - it is usually
included with all of the other
closing documents - but is not
entitled to use the report for
any other purpose without
permission from the lender.
On the other hand, if a home
owner engages an appraiser
directly, the appraiser may
stipulate how the appraisal can
be used. For example, an
appraisal is often used to get
Private Mortgage Insurance
removed (PMI), for estate
planning, during a divorce and
to counter tax challenges.
If not otherwise specified, the
home owner can use the appraisal
for any purpose. |
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