How To Get The Best Appraisal - Clean up, shampoo the carpets, paint, touch up, mow, trim and do all those things that make it look its best.It is important to ensure that your appraiser understands the markets and trends in your specific area. In a county like Los Angeles County, for instance, an appraiser that is familiar with homes in Stockton would not necessarily be up to speed with homes in Beverly Hills. Therefore, it is wise to make sure your appraiser has done recent work in your neighborhood in order to give the most accurate assessment of your home appraisal. This might not come as any surprise to you, but you would be surprised how often an appraiser tries to specialize in multi markets, becoming a “jack of all trades”, so to speak, but a specialist to none but where they personally reside.
To ensure the best appraised value of your home, make sure that everything is in good working order. The home should be well maintained. Also, if any homes in your area were sold without the assistance of a realtor, the appraiser may be able to use those as "comps".
Although there is very little that will "change" the value of your house, it is important to give an amazing impression. An appraiser who is looking at a house filled with garbage will not get a warm fuzzy feeling. If you take the time to make sure everything is immaculate and welcoming it will not change the value, but it could sway the value a little in your favor.
Make sure you are there to answer any questions the appraiser may have. If you have done any work on your house since you bought it or refinanced last, make sure you let the appraiser know.
Appraisal - An appraisal is a report made by a qualified, often licensed individual who sets forth an opinion or estimate of value regarding a customers property.
The appraiser determines the value of your home by looking at homes that have sold in the last 12 months in your area. These homes also must be similar for example a split level home can only be compared to other split level homes.
Because appraisers do their job professionally regardless of whether the borrower ends up qualifying for a loan or not, they often require the borrower to pay up front for their services.
For Conventional mortgages and anything covered by the HUD-FHA Direct Endorsement Program, the lender obtains a complete copy of the report detailing the method and basis for the the appraised estimated value.
The term appraisal within the context of mortgages may also be applied to the process by which this estimated value is arrived at.
An appraisal helps the lender obtain an independent opinion of the value of the customer's property, and is used to calculate the transaction's Loan to Value ratio.
If a loan is VA or a HUD application being processed by HUD itself, lenders only receive an abbreviated statement of value with no substantiating information.
Appraisers use a variety of measures and factors to arrive at the estimated value of your property, including the selling prices of comparable properties in your area, the built up area, the condition of the property, etc.
The Appraisal is prepared in the name of the lender bank or the mortgage company that orders the report. Even though the mortgage applicant pays for the appraisal cost, the report does not belong to the him. Federal regulations entitle the home buyer a copy of the report.
Remember an appraisal is simply an opinion of value by a licensed appraiser. It is not a guaranteed value of a home. An appraised value does not mean that is what you should sell your home for. An appraisal however will give you an idea as to what your house is worth compared to other surrounding similar homes.
It is also important to have a recent appraisal of your home. The value of your home may change in relation to other homes in the area without any physical changes to your own residence.
Consumers Right to Receive an Appraisal Report - You have the right to a copy of the appraisal report used in connection with your application for a mortgage loan. You must write to your lender or broker within 90 days of your application date to receive a copy of the appraisal for your home.
For Borrowers: Remember if you switch mortgage companies mid stream the appraisal will have to be released to the other mortgage company by changing the orders' name on the appraisal. In most cases, the new mortgage company will have to fax over a new order and buy/sell and then the other company can recieve the previous appraisal from the appraiser.
You have a right to receive a copy of your appraisal report. However its only a copy and the rights may belong to either the broker or the lender depending on who ordered it.
There is often much confusion regarding the consumer's right to receive a copy of the appraisal report. Many borrowers mistakenly beleive that since they paid for the appraisal report that the report is theirs to do whatever they wish with it. Many beleive that it is an open document that they can use to shop around with different lenders. The fact is that even though the consumer has paid for it, the report was performed exclusively for the lender who ordered it and is the property of that lender. The borrower's right is only to receive a copy of the report. Any changes to the report or transfer of the lender will have to come with the approval of the original ordering lender.
If you are having trouble receiving a copy of your appraisal report from the mortgage company, submit your request in writing and refer explicitly to your legal right to receive and their obligation to furnish this report.
The appraisal will have a detailed analysis on the value of your home, as well as recent sales of comparable homes in the vicinity.
