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Real Estate Appraisals
 With today’s declining home values, these days it is more important then ever to make sure that you are receiving an accurate appraisal for the home you are purchasing. During the housing boom, many homes were appraised for as much as 10 percent more than they were actually worth. Elevated home appraisals are one of the main culprits for creating the housing bubble that sent home values tumbling after it burst.
So why were there so many inflated appraisals? Until recently, the process for obtaining an appraisal for a home loan was mostly controlled by the mortgage company, many who tended to order appraisals from those who would appraise properties for the amount needed to qualify for the loan, and not strictly on what the property was worth. Some lenders would only order appraisals through those who came in with the right value to qualify for the loan the mortgage company was providing to the borrower.
In order to provide clients with excellent customer service, many realtors are now advising them to make sure the appraiser is properly qualified. Since the purchaser of the home pays for the appraisal, you have a right to make sure your purchased property is appraised for the correct value. Here are some of the tips when getting an appraisal:
- Make sure the appraiser is licensed to do business in the state as well as accredited by a national professional organization. Appraisers with advanced accreditation are less likely to be pressured into providing an inflated appraisal. If the appraiser is accredited by the American Society of Appraisers (ASA), then they are required adhere to the United Standards of Professional Appraisal Practice (USPAP), which are the standards of best practice and ethics recommended by Congress.
- Under federal law, you have a right to receive a copy of the appraisal report. Receiving a copy will provide you with information about what other similar homes are selling for in the neighborhood, and what features makes each of the comparable properties worth more or less than the one you are purchasing.
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