Understanding appraisals and provide buyers and sellers guidance of what an appraisal says.
An appraisal, which is not really well-understood by most, has many benefits for both home buyers and sellers. An appraisal shows a home buyer or seller the fair market value of the Lakeland FL home he or she intends to buy or sell. It also gives the lender an idea of how much they could safely lend the borrower.
Appraisals are also a good source of objective and unbiased information since it is done by an independent appraiser who does the appraisal for a professional fee rather than for a commission.
But many consumers actually struggle with appraisal problems when trying to buy or sell a home.
The Appraisal Institute has suggested these tips on how to reduce stress and take a proactive approach when it comes to the appraisal process:
1. Understand the importance of appraisals. You wouldn’t want to buy an overpriced home.
2. Hire a qualified appraiser. Don’t hire someone just because he charges the lowest. Hire a professional appraiser like a designated SRA, SRPA, or a member of the Appraisal Institute.
3. Come along with the appraiser during property inspections. Aside from being able to actively participate and learn in the process, you may also be able to catch errors that may have been overlooked.
4. Ask the lender for a copy of the appraisal report. The law requires that a copy of the appraisal should be given to you within 30 days.
5. Study the appraisal report. Ask Questions. Check the report for errors. The most common errors in appraisals are: miscalculation of gross living area, misuse of adjustments to comparables, and disregarding special financing and concessions.
6. Appeal the appraisal if necessary. If you feel that the appraisal may be changed due to a change in market conditions, contact the appraiser!
7. Ask the lender for a second appraisal by a designated appraiser.
8. If you have complaints, file them with the right state board or professional appraisal groups.