The Appraisal Hub Promise
As State Certified Real Estate Appraisers, these are some of the qualities we possess to obtain quality appraisal work.
This one seems pretty obvious. But one of the first qualities you need as an appraiser is an ability to gather data from multiple sources and make sense of them. You have to understand the market so you can justify their decisions. You also have to know how to apply your knowledge to your reports.
Another obvious one. With all that goes into an appraisal report, you can put yourself at risk if you’re not willing to put in the time to ensure your reports are correct. You know that the tools you use for your appraisals affect your appraisals and which ones you trust with your data and reputation.
As I’m sure you’re aware, the life of an appraiser is rarely dull. The ability to be flexible as a quality is a trade-off between having a steady income and doing what you need to make money. You have to spend time driving to and from properties, and you’re often up early in the morning or late at night to get everything done.
It would be simple to let buyers and sellers, brokers and agents, etc. to influence your appraisals. You know the rules and regulations and how the real estate market depends on you to be independent and impartial. Changing your report to meet someone else’s needs can be tempting.
You have to keep up with the newest technology and how to use the technology to make yourself more efficient. Of all the qualities in this article, this one is often overlooked. As an appraiser, you can get left behind if you aren’t willing to adopt new technology.
This list is not exhaustive of the qualities it takes to be an appraiser. These qualities are merely a start. Each appraiser uses them differently and adapts and changes as needed.
What qualities do you think are necessary for appraisers? What changes have you seen in the industry, and what do you expect to see in the next ten years?
Listing appraisal: An agent or seller wants to know the value of their home for the purpose of listing it on the market or selling it to a predetermined party. These require a high level of analysis of the market as the effective date may be the present date but the client needs to understand the direction of the market, marketing time, inventory, who the typical buyers are right now, predominant financing terms, etc in order to adequately market and negotiate real property. With this product, an agent could sell any property in the state of California without knowing a thing about the home, area, or market.
IRS Appraisal: The IRS is not an organization to mess with. Most accountants agree that the best form for the IRS is a full appraisal if you have occupancy. If the property is being rented then an exterior-only (aka: drive-by) is sufficient. If the property has already been sold then a desktop is sufficient. Consult with your accountant or attorney.
Estate Appraisal: These are usually ordered when an owner passes away. They are also referred to as date-of-death appraisals since they are retrospective and the effective date is the date of passing. These can be desktop or full reports.
Taxation Appraisal: These are used to value the home(s) is someone is determining value for the purpose of reporting values to the government: gifting real estate or calculating depreciation, etc. A full appraisal is recommended.
Builder/Investor: These assignments report an ARV (after repaired value) and an As-Is value.
Level of fieldwork: desktop or full appraisal