How To Choose A Trusted Appraiser For Your Home Valuation

A woman using a laptop

Have you been flooded with offers to buy your home through calls, emails, and even fliers on your doorstep? It’s natural to wonder, “What’s my home’s current value?” and “How do I find the right appraiser to get an accurate home valuation?” You might also ask, “Are there dependable appraisers nearby who can help?”

To make this process easier, we consulted with industry professionals, including experienced real estate agents and certified appraisers, to share their best advice. By following their guidance and utilizing essential tips and resources, you can confidently find a qualified and licensed appraiser in your area to assess your home’s worth accurately.

A woman looking at the professional appraiser's laptop

Key Factors to Consider When Choosing an Appraiser

When selecting an appraiser, it’s crucial to ensure they meet certain essential criteria to guarantee an unbiased and reliable valuation of your home:

  1. Impartiality: The appraiser must remain an unbiased third party. This means they should have no personal relationships with any interested parties, such as the buyer, seller, or real estate agents, and should have no financial stake in the property being appraised.
  2. Qualified Expertise: The appraiser must meet the necessary qualifications according to state laws. Typically, this includes having an associate or bachelor’s degree in any field, along with 12 to 18 months of practical experience working under a licensed appraiser. They should also hold a valid appraiser certificate or license, ensuring they possess the knowledge and training required to assess your home accurately.
A woman using a mobile phone and laptop

How to Find a Qualified Local Appraiser

If you need an accurate appraisal for your home, it’s essential to work with a qualified and experienced appraiser. Here’s how you can find the right professional:

  1. Consult with Your Real Estate Agent
    A local real estate agent can help connect you with a trusted appraiser who is experienced in your area. They can recommend professionals who have a proven track record and are familiar with the local market.
  2. Ask Your Lender for a Referral
    Mortgage lenders typically work closely with appraisal management companies (AMCs) and can provide referrals to reputable, licensed appraisers who meet industry standards and ensure impartial evaluations.
  3. Choose a Reputable Appraisal Service
    When choosing an appraiser, ensure they have the necessary qualifications and experience in your area. At Block Appraisals, we have licensed, certified appraisers who specialize in providing reliable and accurate home valuations. We understand the nuances of local markets and offer personalized services tailored to your needs.

By relying on trusted professionals like Block Appraisals, you can be confident that the appraisal process will be thorough, unbiased, and accurate. Contact us today to get started with an expert appraisal for your property.

A professional appraiser explaining the valuation results

How to Determine Your Home’s Value

If you’re planning to sell, a real estate agent can offer a reliable valuation based on market trends. However, for a precise and unbiased assessment, it’s best to work with a qualified appraiser. Below are the most common methods to determine your home’s value:

Use Apps and Online Tools for Estimating Your Home’s Value

In today’s digital age, many apps and online platforms provide a fast and easy way to estimate your home’s value. These tools use advanced algorithms that analyze market data, MLS transactions, and details about your property and neighborhood to generate value estimates.

Many of these online tools claim impressive accuracy, with typical error rates ranging from 1.9% to 6.9%. Homes that are actively listed tend to have more accurate results compared to those not currently for sale.

Let’s consider how these estimators perform with a practical example:

  • One app values your home at $350,000, with a range between $330,000 and $370,000.
  • Another tool estimates your home at $325,500.
  • A third platform suggests a home value of $375,200, with an offer range between $340,000 and $390,000.

These tools offer a quick and easy way to get a ballpark figure for your home’s value by simply providing basic information about the property. It’s a great starting point if you’re curious or planning next steps.

For instance, a general online home value estimator requests essential property details and uses algorithms to analyze millions of real estate transactions to offer an instant estimate. After receiving the initial estimate of $360,000, the platform may follow up with a more specific estimate, such as $359,450, via email—providing a reliable value range to assist in your decision-making process.

The Limitations of Using an Online Home Value Estimator

While online home value estimators offer quick and convenient estimates, they are not a substitute for a professional appraisal. These tools can sometimes be inaccurate, with studies showing that online valuations are within 7% of the actual value only 50% of the time.

One significant downside of online estimators is that they lack the human element. Unlike a real estate agent or appraiser, an online tool doesn’t visit your home to assess its specific condition. A local expert can provide insights based on knowledge of the neighborhood, market trends, and what potential buyers are looking for in homes like yours.

“Online valuations are based on algorithms, which are often very basic,” explains one expert. “These tools are typically ZIP code-driven and might not account for specific community details. A computer won’t consider the nuances that a professional agent or appraiser would.”

For instance, the app might miss important factors such as whether your home is near a school, next to power lines, or in a neighborhood with consistent traffic or light pollution. These elements can significantly affect a home’s value, and only a professional appraiser can accurately assess their impact.

Additionally, online estimators don’t account for home upgrades. If you’ve made improvements, like replacing the roof or installing high-end kitchen appliances, an appraiser will factor these into the valuation, something an algorithm simply can’t do.

Obtain a Comparative Market Analysis (CMA) from a Real Estate Agent

Although online home value estimators offer a quick snapshot, a comparative market analysis (CMA) from a real estate agent gives you a far more accurate and detailed picture of your home’s worth. Many agents provide this valuable service free of charge.

A CMA is a detailed report that a real estate agent creates to help determine the best listing price for your home. The CMA typically includes the following elements:

  • Your home’s location and 3 to 5 similar homes that have recently sold in your neighborhood (comparable properties)
  • A breakdown of your home and comparable properties, including details like floor plans and the number of bedrooms and bathrooms
  • The square footage of your home
  • Photos of your property and the comparable homes
  • The total sales price and the price per square foot for each comparable property
  • Adjustments to account for any differences between your home and the comparable properties
  • The estimated fair market value for your home

A CMA adds a personal touch to the home valuation process. Real estate agents bring their local expertise to the table, adjusting the value for factors like recent upgrades, unique features, or the specifics of your neighborhood. For example, if your property is near a park, or has particular upgrades, an agent will factor those in to adjust your home’s market value. They also understand how local trends, such as increasing demand for homes in your area, can affect your home’s price.

While a CMA isn’t an official appraisal, it must still be reliable and accurate. If an agent consistently provides inaccurate or misleading CMAs, their state’s real estate licensing commission may take corrective action. This ensures that you receive a trustworthy and informed estimate of your home’s value.

Obtain a Home Valuation from a Licensed Appraiser

For an official and precise valuation of your home, particularly for important financial decisions, hiring a licensed or certified appraiser is the best route. These professionals are highly trained to evaluate your home’s market value, taking into account factors such as its location, upgrades, unique features, and potential drawbacks of both the property and its neighborhood.

The cost of a professional appraisal generally varies depending on the property type and location but typically falls within a certain range for most homes. You can expect the appraisal process to take several days, typically around a week or so, to complete.

A licensed appraiser provides an objective, in-depth evaluation that gives you a reliable and accurate value for your home, which is especially valuable for purposes like buying, selling, refinancing, or even legal proceedings.

Key Questions to Ask When Hiring an Appraiser

To ensure you hire a skilled and reliable appraiser, it’s important to ask a few essential questions about their process. Here are some vital questions to consider before hiring:

  • Are you experienced with the local real estate market?
    An appraiser with local market expertise will have a better grasp of the area’s property values and trends, giving you a more accurate assessment based on what’s happening in the neighborhood.
  • What factors do you consider when valuing my home?
    This question helps you understand the appraiser’s approach and what specific elements they will assess, such as location, market trends, property condition, and any home improvements.
  • Could you share any references or reviews from recent clients?
    Requesting references gives you insight into the appraiser’s reliability, professionalism, and customer service, allowing you to make a more informed decision based on others’ experiences.
  • How long does it typically take to receive the appraisal report?
    If you’re working within a specific time frame, knowing the appraiser’s typical turnaround time helps you plan your next steps, especially if you’re aiming to sell your home or refinance quickly.

What to Expect During the Home Appraisal Process

The appraisal process involves a thorough evaluation of your home’s value, taking into account various factors such as the property’s condition, the neighborhood, and recent comparable home sales. Here’s what you can expect during the appraisal process:

  • Visual Evaluation
    The appraiser will inspect the physical condition of your home, noting its size, age, condition, and any improvements or upgrades made, such as new roofing or remodeled kitchens. They’ll also evaluate features like landscaping, the number of rooms, and the overall appeal of the home.
  • Property Research
    The appraiser will start by researching your property’s history, location, and neighborhood, including any external factors that could impact its value. They’ll look at zoning, nearby amenities, and local market trends that influence property values in your area.
  • Value Calculation
    Finally, the appraiser will use all the information gathered to calculate the estimated value of your home. This process includes analyzing data from property comparisons, local market conditions, and physical property evaluations to come up with an accurate value.
  • Comparison with Comparable Sales
    The appraiser will compare your property to similar homes (called “comps“) that have recently sold in the same neighborhood or area. This allows them to determine a competitive market value based on what buyers are willing to pay for homes like yours.

What’s Included in an Appraisal Report

An appraisal report provides an official statement of your home’s value, along with a breakdown of how the appraiser reached that conclusion. Typically delivered through the Uniform Residential Appraisal Report (URAR), the document includes the following key details:

  • Home and Property Size
    The report will include the total square footage of your home, as well as the size of the lot it sits on. The appraiser will measure rooms, living spaces, and external areas like yards, garages, and patios.
  • Exterior and Interior Conditions
    The report will detail both the exterior and interior condition of the home. This includes an evaluation of the structure, roof, foundation, windows, and other critical components, along with the condition of rooms and amenities.
  • Value of Living Areas
    A breakdown of the value assigned to various living areas is also provided. This includes living rooms, kitchens, bedrooms, bathrooms, and other functional spaces within the home, with an analysis of their individual contributions to the overall value.
  • Appraisal Form
    The appraisal form outlines the overall structure of the report and contains key data about the home’s value and characteristics. This form serves as the foundation for all subsequent information.

What Information to Share with Your Appraiser

While appraisers aren’t home inspectors and aren’t focused on identifying repairs that need to be made, they do assess the condition of your home. To ensure you get the most accurate and favorable valuation, it’s important to share relevant details with the appraiser. Here’s what you should tell them:

  • Repairs That Are Not Visually Obvious
    Some updates or repairs may not be immediately visible to the appraiser, so it’s crucial to highlight them. For example, new HVAC systems, upgrades to plumbing or electrical systems, blown-in insulation, or roof repairs that left ceiling watermarks should be shared with the appraiser.
  • Recent Repairs or Updates
    Provide a list of recent repairs, renovations, or upgrades to your home, including the cost and the date of each improvement. If possible, share receipts or documentation to back up the information. The more accurate and detailed the data, the better.
  • Special Features or Unique Improvements
    If you’ve made any upgrades that increase your home’s value but are not immediately noticeable (like energy-efficient windows or structural reinforcements), mention these as well. This ensures the appraiser takes them into account when evaluating the overall value.

Providing detailed and accurate information helps the appraiser assess your home’s true value, which could result in a higher appraisal.

What Information to Avoid Sharing with Your Appraiser

When interacting with an appraiser, it’s important to maintain objectivity and impartiality. The appraiser is tasked with determining the fair market value of your home, and this process must remain unbiased. Here’s what you should avoid telling your appraiser:

  • Avoid Sharing Personal Financial Information
    Don’t disclose any financial hardships you’re facing or personal reasons for needing a higher appraisal. These details can unintentionally influence the appraiser’s objectivity. The appraisal should reflect the home’s true value, not be swayed by your personal circumstances.
  • Don’t Request a Specific Value
    It’s essential to refrain from asking the appraiser to value your home at a specific price, whether that’s the listing price or a value that fits your financial situation. The appraiser’s job is to assess the market value, not to meet your expectations.
  • Don’t Highlight Reasons Why the Value Might Be Low
    Similarly, avoid pointing out reasons why you think the home might appraise lower than expected. An appraiser needs to remain impartial and perform their valuation without any preconceived notions or outside influences. Let the facts speak for themselves.
A licensed appraiser handing the keys to the client

Common Reasons You Might Need a Home Appraisal

Beyond satisfying your curiosity about your home’s value, there are many practical reasons why you might need a professional appraisal. Here are some of the most common situations where a home appraisal is essential:

  • Selling Without an Agent: If you’re selling your home independently, an appraisal helps you set a competitive and accurate asking price.
  • Pricing Unique Properties: For unusual or distinctive homes, an appraisal provides justification for your listing price.
  • Refinancing Your Mortgage: Whether you’re aiming to pay off your loan faster, reduce monthly payments, or cash out equity, an appraisal is a critical step.
  • Dividing Property in a Separation: If you’re buying out another homeowner due to a separation or divorce, an appraisal determines a fair buyout value.
  • Financial Planning: Appraisals help financial planners accurately evaluate your assets for retirement planning, writing a will, or other long-term goals.
  • Appealing Tax Assessments: If you believe your home’s assessed value is too high, an appraisal provides evidence to support a lower tax assessment.
  • Legal and Estate Matters: From bankruptcy proceedings to managing a deceased family member’s estate, appraisals are crucial for disclosing assets, settling debts, calculating taxes, and dividing assets among heirs.

A professional appraisal ensures you have an accurate, unbiased valuation, no matter the situation.

Conclusion

Choosing a trusted appraiser is crucial for obtaining an accurate valuation of your home. By ensuring that the appraiser is impartial, highly qualified, and familiar with your local market, you can confidently move forward with your real estate decisions. Don’t rely solely on online tools or estimates; while they offer a helpful starting point, they cannot replace the expertise of a certified appraiser. A local real estate agent or lender can provide valuable recommendations, helping you connect with the right professional for your needs.

When hiring an appraiser, remember to ask important questions about their experience, approach, and references. A well-trained appraiser will consider various factors—such as your home’s unique features, the local market, and recent sales—to provide an accurate and unbiased home value. Whether you’re selling, refinancing, or just curious about your home’s worth, getting a professional appraisal ensures peace of mind and a reliable figure to guide your decisions.

If you’re ready to get a precise home valuation, trust Block Appraisals for your appraisal needs. Our certified experts are here to help you understand your home’s true value with confidence and accuracy.

FAQs

Why should I hire a professional appraiser?

Professional appraisers provide an unbiased, thorough evaluation that considers your home’s condition, the neighborhood, and market trends. Unlike online estimators, they offer a detailed and accurate value.

How can I find a reliable appraiser?

Start by consulting with your real estate agent or lender for referrals. You can also research certified appraisers who specialize in your local market.

How does an appraiser determine my home’s value?

Appraisers evaluate your home’s condition, size, features, and compare it with similar properties in the area. They also consider external factors like the neighborhood and market trends.

What’s the difference between an appraisal and a CMA?

A Comparative Market Analysis (CMA) is typically provided by a real estate agent and offers an estimate based on recent sales in the area. An appraisal is a more formal and detailed evaluation from a certified professional.

Can online home value tools be trusted?

Online tools offer quick estimates, but they may lack accuracy and fail to account for your home’s unique features or the local market. For the most reliable value, consult a licensed appraiser.

Users Also Say

How Can You Select a Fair Appraiser?

Cap***nBas**all

Looking for a fair appraiser? Start by reaching out to a few local appraisers, explaining your need for an appraisal, and asking about the process. Most appraisers are eager to talk about how appraising works because, surprisingly, many people don’t take the time to inquire. Be sure to clarify that you’re seeking an accurate market value of the property. A professional appraiser should be willing to answer your questions thoroughly.

They’ll likely ask you about the project to establish the Scope of Work, determining what needs to be done to fulfill your request.

One thing to watch out for is homeowners who ask for either a high or low appraisal—this is a red flag. A good appraiser will stand firm, emphasizing that they appraise properties based on their true value. If they feel pressured to adjust the appraisal, they should be clear about their stance and potentially turn down the assignment.

G**ssB**t

You’ve probably come across people mentioning that appraisers often come in at or very near the contract price, and it raises some suspicions. But the reality is, for many properties, the market provides the best indication of value. If a property isn’t listed or doesn’t have any offers, the appraisal could end up coming in lower because the appraiser lacks that crucial piece of information—the current market value.

However, it depends on the property. For some homes, an appraiser could guess the value with a couple of thousand-dollar accuracy, even without seeing the contract price beforehand. For others, the difference might be so small that it’s less than the broker fees, even if the appraisal is slightly low. But in some cases, the appraiser could be far off, especially if there’s something unique or misunderstood about the property.

A****ers*n43

In situations like yours, it might not hurt to get two appraisals. I recently did a second appraisal on an off-market sale, and my valuation came in about $10,000 higher than the other appraiser’s. I’m not sure if they’ll choose one value or split the difference, but at least it confirmed that we were in the same general range.

It’s essential for appraisers to remain fair and impartial. Personally, I find it easier to let the data guide the report rather than trying to influence it one way or the other. The key is to find an appraiser who is knowledgeable about your area, and you should be in good hands.

Hope this helps!

A professional appraiser in his office
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