The Value of The Home owner
Its fairly common to here about how appraisers briefly view the home and then they are gone. It is to be noted that most of the work begins after the inspection of the property, but the value of the homeowner should not be excluded. The most valuable information you will receive about a property besides public record data is the information from the homeowner. Being able to speak to them regarding the property that may not be as apparent upon a visual inspection can be extremely helpful. Often times, homeowners have records of the maintenance done on the property and a list of all upgrades as well. Some of these valuable "tidbits" may go unnoticed upon inspections. It provides that added value to a credible appraisal report. Taking the time to get to build rapport with the homeowner is a vital part of our property inspections. Its an integral part of our appraisal process. Engaging in some conversation helps gain knowledge about the home. If you are a home owner, it is important to have all pertinent information regarding the improvements made to your home.
A La Mode’s MLS Importing Tool – Par with Datamaster?
This is not to endorse Alamode, but their constant ability to solve appraiser quagmires is simply amazing. The MLS importing tool is a tool to benefit from when using TOTAL. On the surface, the idea of taking everything from MLS and importing it would appear to be a mistake, but that doesn't have to be how its utilized. Of course you will review the data entered always but this tool allows for instant importing to the sales grid. No need to worry about mistyping an MLS number or an address because its taken directly from the file. Once you have selected a file, you will need to create a template. Importing everything isnt necessary and really not recommended. There are certain fields that require specific formatting. Whether that be personal preference or client specific, these "personalizations" are a reflection of our product or just a necessity. What's impressive is A la mode has considered that and they offer what they call a "clean up data during import" feature. This tool really allows you to be in charge of how you want the data being imported to appear on the grid. Lets be clear that properly setting this up does take some time, but in the long term, it will yield a return of your time investment. Your local MLS formatting is fixed. They have certain abbreviations for fields and certain formatting options that may not work for your sales grid, but being clever in setting up certain "clean up" rules, you can get around some of those obstacles. You even have the ability to merge two columns into one field, which is helpful at times when MLS splits address into two columns (address number, address line 1). Is this a replacement to datamaster? The answer is no. For what datamaster provides… Continue Reading
Why Do Appraisers use Comparables To Value My Home?
So why do appraisers use comps to arrive to a certain value for a property? There are three approaches to valuing real estate and the Sales Approach is what lenders typically require and is typically the most sensible approach to valuing residential property. The whole premise of the sales approach is that the subject home is compared to other homes that would possibly be an adequate substitution for that property. Meaning, would that buyer consider these comparable (comps) as a suitable alternative? An an ideal situation (this can happen in certain subdivisions, tract homes, condos, etc), an appraiser may find an identical match. They then would compare what that sold for and use that as a reference for valuing your property. If the market has changed since the property has sold, an adjustment may be warranted. Essentially, an appraiser has only certain sales to utilize (preferably recent sales) and comparables will have to be chosen from that. Location adjustments may also be considered if that identical property was in another area that may be superior or inferior to the subject home. Really what the sales approach is based on is the principle of substitution. What this principle states is that a home's value tends to be set by the cost of acquiring an equally desirable and valuable substitute property, and assuming no costly delay is encountered in making the substitution. Also, the principle of substitution says that a buyer will not pay more for a property than the cost of an equally desirable alternative (substitute) property. Ex. Home A on Example St is being appraised. An identical home sold last week across the street from House A with identical condition & characteristics for $400,000. Another property sold on a similar road with identical characteristics for $400,000. With these two comparable sales, it is reasonable to… Continue Reading
FHA Property
FHA Approved Loans under FHA require a certified residential real estate appraiser in the state of Massachusetts. We are trained and understand the rules and procedures in FHA's guidance and policy documents. FHA loans are essentially insured by the Federal Housing Administration. This is a federal agency within HUD (U.S. Department of Housing and Urban Development. FHA does not lend money however its a safeguard to protect lenders with mortgage insurance. FHA was created to provide low-income to moderate income families that do not qualify for conventional lending. Order an FHA Appraisal .