Appraisal Services, LLC Appraisal Info Client Login Contact Us Fax an Order Menu Appraisal Services, LLC has answers to "Frequently Asked Questions" Appraisal Services, LLC is more than happy to reply to any inquiries you might have about appraisals or real estate in Fairfield County. Don't hesitate to contact us today. What is an appraisal? Describe what an appraiser does Why would a person require services from Appraisal Services, LLC? What is the difference between an appraisal and a home inspection? Is an appraisal the same as a comparative market analysis(CMA)? What's in an appraisal report? Once the report is done, what assurance is there that the final number is legitimate? What goes into an appraiser's certification? Who employs appraisers? Where does an appraiser get the information used to estimate values in Fairfield County or other areas? Why should I hire a licensed appraiser? My mortgage statement has an item on it for PMI? Can I get rid of that? Should I do anything in advance of the appraisal inspection What is "Market Value?" Once complete, who actually owns the appraisal report? How can I get the most ROI out of home improvements? What is an appraisal? (Top) An appraisal report is a thought process leading to an opinion of value. There are three "common approaches to value" which helps the appraiser conclude this opinion or valuation. One of the methods in use is the Cost Approach, which finds what it would cost to replace the improvements to the home, less the depreciation and physical deterioration, adding the land value. Another of the approaches is the Sales Comparison Approach - which deals with discovering a comparable analysis to other similar properties within a close proximity which have recently sold. The Sales Comparison Approach is normally the most accurate and best indicator of a liklely sales price for a home. The third approach is the Income Approach, which is the most important method in appraising income producing properties - it involves estimating what an investor would pay based on the capital generated by the property. Describe what an appraiser does (Top) An appraiser generates an impartial and well substantiated assessment of market value, often in the context of a real estate sale. Appraisers document their findings in appraisal reports. Why would a person require services from Appraisal Services, LLC? (Top) There are a lot of reasons to order an appraisal from Appraisal Services, LLC with the usual reason being real estate and mortgage transactions. A few other reasons for obtaining an report include: If you are applying for a loan. To reduce your property taxes. To build a case for a homeowner's equity and remove PMI. To contest high property taxes. To handle an estate. To offer you an edge when purchasing a home. To figure out a reasonable property value when listing your home. To ensure parties are provided just compensation in eminient domain cases. Government agencies such as the IRS need an appraisal on every home. If you are ever involved in a lawsuit. If you need a more detailed explanation of the appraisal process, please click here. What is the difference between an appraisal and a home inspection? (Top) Home inspectors do not provide an opinion of value and do not use the same forms as appraisers. The purpose of a home inspection is to investigate the structure of the house from bottom to top. The archetypal home inspector's report will contain an evaluation of the condition of the property'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. Is an appraisal the same as a comparative market analysis(CMA)? (Top) Simply, they share nothing in common. What the CMA depends on are vague trends. The appraisal is reliant on similar proven comparable sales. The appraisal report will also contain neighborhood and construction values. All a CMA does is generate a "ball park figure." Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value. But the biggest difference is the person doing the report. Real estate agents, who may not have a true grasp of valuation methods or the entire market, generate CMA's. A certified, state licensed professional who has formed their livelihood on valuing properties in and around Fairfield County is behind the appraisal. Likewise, the agent has something at stake since they get a commission based on the property's selling price - their commission - whereas the appraiser is bound by a code of ethics to collect only a flat fee for work they perform, regardless of their outcome. What's in an appraisal report? (Top) Each appraisal must reflect a credible estimate of value and will document the following: Who engaged the appraiser and other intended users. The intended use of the appraisal. The reason for the appraisal. The type of value reported and a definition of that value. The effective date of the appraisal.(Sometimes this is in the past or maybe the future for new construction!) Pertinent property attributes, including: location, physical characteristics, legal attributes, economic attributes, the real property interest valued, and non-real estate items included in the valuation, such as personal property, items that are more or less permanently installed and even intangible considerations. Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature. Division of interest, such as fractional interest, physical segment and partial holding. The scope of work considered while working up the appraisal. For a more detailed view of what goes into an appraisal report click here: Sample Appraisal Report Once the report is done, what assurance is there that the final number is legitimate? (Top) In communicating an appraisal report, each appraiser must make sure of the following: That the information analysis utilized in the appraisal was appropriate. That crucial errors of omission or commission were not committed individually or collectively. That appraisal services were provided in a careful and judicious fashion. The final appraisal report was clear, sound and defensible. To become a state licensed appraiser, there are strenuous education requirements as well as experience that must be attained - all with the end goal of being able to provide unbiased value opinions. Likewise, appraisers must follow a meticulous industry code of ethics and comply with national standards of practice for real estate appraisal. The tenets for working up an appraisal and documenting its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP). (Top) Licensing and certification takes coursework, tests and real world experience. Once an appraiser is licensed, he or she must then take continuing education courses so that the license doesn't expire. To see the specific requirements for any state click here. Who employs appraisers? (Top) Most of the time, appraisers are hired by mortgage lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions. Where does an appraiser get the information used to estimate values in Fairfield County or other areas? (Top) Collecting information is one of the primary things an appraiser does. Data can be classified as either Specific or General. Specific data is gathered from the home itself; Location, condition, amenities, size and other specifics are noted by the appraiser during an inspection. General data is collected from a number of sources. To find out about recently sold homes to be used as "comps", we typically use the local Multiple Listing Service. To double-check actual sales prices, we use items in the assessor's office and other public documents that are usually online nowadays. Flood zone data is gathered from FEMA data outlets, such as a la mode's InterFlood system. And last but not least, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market. Why should I hire a licensed appraiser? (Top) Any time the value of your home or other real property is being used to make a significant financial decision, an appraisal helps. If you're selling your home, an appraisal will help you determine a price that maximizes profit and reduces time on the market. When buying, be sure you're not overpaying by getting an independent appraisal. For those settling an estate or divorce, an appraisal from Appraisal Services, LLC is the best way to ensure assets are divided properly. A home is often the single, largest financial asset anybody owns. Don't make decisions in the dark with a professional appraisal. My mortgage statement has an item on it for PMI? Can I get rid of that? (Top) PMI is the common abbreviation for for Private Mortgage Insurance. This added policy protects the lender in case a borrower is unable to pay on the loan and the value of the property is less than what is owed on the loan. Once you reach the point where your home's equity plus the amount you've paid is at least 20% of your loan balance, you can have your PMI dropped. The savings from getting rid of your PMI pays for the appraisal in a matter of months. Nobody is more qualified than Appraisal Services, LLC when it comes to analyzing real estate appreciation in Stamford and Fairfield County. Contact us today. Should I do anything in advance of the appraisal inspection (Top) We begin with an inspection of the property. What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general condition of its features. Inside, pick up any clutter and make sure we can find our way to things like furnaces and water heaters. In the yard, trim any bushes so we can be free to get an accurate measurement of exterior walls. You can make things go faster and improve the accuracy of the appraisal report by having the following things on hand: Written property agreements, such as a maintenance agreement for a shared driveway. Any paperwork, such as a title policy with information on encroachments or easements encroachments or easements. Any "Homeowners Associations" agreements or, if applicable, condo agreements or fees . Brag sheet that lists major home improvements and enhancements, the amount of their purchase and date of their installation (for example, the addition of Insulation or roof repairs) and permit confirmation (if available). A bill for your most recent real estate taxes which should also contain a legal description of the property. What is "Market Value?" (Top) In real estate appraising, Market Value (as opposed to Fair Market Value) is commonly defined as: "The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Once complete, who actually owns the appraisal report? (Top) In most real estate transactions, the appraisal is ordered by the lender. Even though it's the buyer that eventually pays for the report, the lender is the intended user. The buyer is entitled to a copy of the appraisal - it's usually included with all the other closing documents - but is not allowed to use the report for any other purpose without permission from the lender. It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage. In these cases, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stipulated otherwise, the home owner can use the appraisal for any purpose. How can I get the most ROI out of home improvements? (Top) The answer to this is different depending upon the location of the home. For example, while quality appliances are attractive, a $7000 built-in refrigerator won't pay off in a neighborhood of moderately priced homes No matter where you go, however, renovating a kitchen is almost always a safe investment. One recent study revealed that putting $20,000 into a kitchen remodel would add about $17,500 to the value of the home - or about an 88% return on investment. Bathrooms were second, yielding 85%. On the contrary, something that may not add value would be painting just for the sake of redecorating. 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