appraisal

Appraisers – Why They Do Not Determine Value…

March 5, 2018 by Lance Mohr

It's always a little surprising that almost everyone thinks an appraiser job is to determine the value of homes. If you are a homeowner and you call an appraiser out to give you a value of your home, that one thinks. But the vast majority all appraisers are doing the appraisal for a buyer that is purchasing a home. If this is the case than the appraiser job is NOT to determine value. Watch the video to see what their job really is.

Transcription

Hi everyone. This is your Tampa Bay realtor Lance Mohr and in this video, I want to talk about home appraisers. What's their job, because of people thinking appraisers job is to determine the value of the property and in almost all cases that is not their job and we're going to go over that in the short video.

So this does come up every once in a while what it is the appraiser's job. So to let me break it down into two areas. Number one if your home so and you want an appraiser to come over and give you an idea what your home will sell for and put a value on your home sure they're determining the value so hopefully a project perspective buyer will come in, make an offer though see the value they’ll agree upon it but in most cases that’s not what you're talking about. In most cases what happens as a buyer goes outlooks in the property the lender contact switches outlets in an appraisal done orders the appraisal now when they do that the appraiser is not coming out for the bank to determine the value at a property. They’re actually coming out to makes sure the property is worth what the buyers are paying. So this happens every once in a while. I’ll give you an example. Buyers looking a property is listed for 270 and they put in an offer full price because they know it's a really good deal at 270, as a matter of fact looking at the comps that come up at probably 285 and they’re thinking this is great we have fifteen thousand dollars’ worth of equity and then they get the appraisal back and it says 270 and I like what do you mean, I thought it was worth 285 and I’ll tell you what it is when the appraiser went out there they actually have the purchase contract and their job wasn't to determine the value of the property their job was to determine is it worth what you’re paying and you’re paying 270. Now in some cases, they might bring it in higher maybe bring it in it to 285 or maybe they bring it in at 280 but there's really no need for him to do that.

There's really no I guess a liability for there might be a liability for them to do that. So a lot of cases the appraisers just going to bring it in is exactly what the purchase contract says. So if you do buy a property and you’re thinking you're getting a really good deal on it. You may be but understand if it comes in at the purchase price that really doesn't have any bearing on how good of the deal you're getting on the appraisal. So it's good to know this. If you are or you do run into this situation.

If you have any questions don't hesitate to contact me. I’d love to help you. If you know anybody buying or selling a home send them my YouTube channel, I think this could help a lot of people out there. Share it with your friends, I appreciate your time watching my videos. I wish you the best of luck and if you’re going to be buying in the Tampa Bay area whether you're buying or selling give me a call (813-317-4009). I’d love to talk to you. I'd like to help you out. Have a great day.

For more educational real estate videos. Visit my YouTube channel https://www.youtube.com/Tampa2Enjoy
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The Best Way To Get A Home To Appraise

March 20, 2017 by Lance Mohr

I want to go over the best way to get your home to appraise. At least the best possible way to get your home to appraise.

We've been running in low appraisals for a number of years and homes not appraising. The best thing that you can do to get your home to appraise is to make sure your real estate agent meets the appraiser at the property and have them pull up detailed information justifying the value. What tends to happen is a lot of these appraisers are coming from all over the area.

For example, I live in Tampa. I might have a home that I listed and sold in New Tampa. Maybe the appraiser's coming from 45 minutes away. They don't understand the market. They don't understand which builders built the homes. They don't understand or never even been in the subdivision before. Make sure your real estate agent goes out there and meets them.

I just had an agent a couple of weeks ago and what happened is she had some documentation that showed the home was larger than it was but it didn't show up that large in the tax roll. The tax roll showed 2,500 and something square feet. Her documentation had over 2,700 square feet. She didn't meet the appraiser, she didn't give him this, and it came in substantially lower because the appraiser was using different comparables. So just make sure that your real estate agent meets the appraiser out there.

Some appraisers won't even really talk to realtors. They won't even take the information or the documentation. But make sure your real estate agent meets them and tries to give them the information. At least, hopefully, they'll have the realtor's card. And if they can't find comparables, maybe they'll give the real estate agent a call. They're really supposed to do this, they should do this, but a lot of appraisers don't.

It comes down to getting an agent that really understands what they're doing and understands the market, understands your subdivision, et cetera. This is the best thing you can do. There are no guarantees. If the lender ordered the appraisal through a management company, you're almost pretty much dead in the water.

If they've ordered it through VA, if the buyer was a veteran and they're going through the veterans administration, that's good news and it's one of the reasons why I love VA loans – it's because you can appeal the appraisal two times. Keep that in mind and make sure your agent keeps that in mind when you're getting offers. I have purposely accepted offers from veterans and suggested the seller do this just for this reason and it's come back to reward us.

Anyhow, I hope this helps you. If you have any questions on real estate in the Tampa market, please don't hesitate to give me a call. Have a wonderful day and best of luck with your home appraisal.

Please visit our real estate website and view all the homes for sale in Tampa Bay.

Florida Real Estate Recovery Continues Despite Appraisal Problems

December 20, 2012 by Lance Mohr

Real estate for sale in Tampa and other areas of Florida have shown signs of recovery, yet still face issues with appraisals and strict mortgage credit standards. The National Association of Realtors (NAR) recently completed a survey that indicated the various problems in today’s housing market.

The December 2012 attendees in Orlando for the Florida Realtors (R) 2013 Real Estate and Economic Forecast Conference were provided an explanation of the situation by state-certified residential real estate appraiser Pat Reass of Appraisal Group MidFlorida LLC in Winter Haven. The focus of her presentation was an outline of how Florida’s housing market recovery is being affected by appraisal challenges.

Conditions Set by Clients

One challenge is conditions set by clients regarding properties used for valuation. Also referred to as comparables, these similar properties may be left out of the equation based on customer directives. In some cases, REO and short sale properties may be the only similar properties recently sold in a certain area. If the appraiser is prevented from using them to establish true market value, it virtually stops that appraiser from doing the job for which they were assigned.

Getting What You Pay For

Two terms came into play during the presentation, Appraisal Management Companies (AMCs) and appraisal geographic competency, which depends on familiarity with the area in which the real estate in question is located. With lenders attempting to reduce costs, a bidding war has resulted for appraisals. AMCs winning the bid frequently assign appraisers to the task that are unfamiliar with the area. Appraisal geographic competency is negatively affected by a lack of understanding or unfamiliarity with the local MLS, zoning concerns, and building codes for that particular area. Delivering a fast response might suit the lender’s needs, but it typically is based on substandard work created out of ignorance.

Problems with Slow Closures

Recently there have been issues with homes sitting in limbo. The tendency is to blame the appraisal for that situation, although the lender is often to blame. There is quite a bit of additional evaluation being done by the bank before approving and closing the loan. The appraisal itself can be questioned and another appraisal requested before completing the sale.

According to the NAR survey, 65 percent of responding Realtors stated that during the last 3 months, there were not contract problems due to home appraisals. The feeling is that most appraisers are professional, competent and adhere to the standards of their occupation. There were negative responses on the survey regarding appraisal value:

15 percent reported renegotiation of the contract due to a low valuation, reducing the sale price.
11 percent cited cancellation of a sale because the appraised value was below the negotiated price between the seller and buyer.
9 percent said it resulted in a delay of the contract.

Ms. Reass was quick to point out that foreclosure sales, as well as short and distressed sales, can be considered as comparables in certain cases. The significant factors are being in the same condition with the same factors as the home being appraised. Noting that many of these types of properties have been purchased in Florida, leading to additional sales of non-distressed properties, the conclusion is that property being used for valuation is more equitable.

Lack of Comparable Sales Affects Appraisal Value

November 30, 2012 by Lance Mohr

Lack of Comparable Sales Affects Appraisal Value

The recent market has seen a number of short sale and foreclosure homes in quite a few neighborhoods. The rebounding economy is clearing those homes off the books, a benefit for lenders and buyers. But what about a homeowner that has kept the home pristine and welcoming? When it is time to sell, appraisal values may be less than actual value because of lower selling prices in the area.

Appraisers frequently look at the sales price without realizing the reason for significantly lower amounts than the asking price of well-cared for homes. Lacking familiarity with the neighborhood, comparable sales prices are estimated on square footage and the type of home, rather than an empty damaged foreclosure as opposed to an elegant home with custom drapes and hardwood floors.

It is natural for a homeowner to complain if an appraisal is less than expected, but Realtors are also raising their voices in dismay. Upgrading the method of determining an appraisal amount is needed to avoid the harm being caused to home sales. Bidding wars have resulted because of the low inventory of for sale homes on the market. Yet, when a price is reached, the appraisal comes in at a lower amount because it is based on the unfair comparison to distressed property sales, affecting the sale of the current quality home.

Like other areas across the nation, homes in Tampa Fla. are involved in bidding wars due to the low inventory of homes for sale. When a contract is cancelled, delayed or renegotiated because of a significantly lower appraisal, recovery in the housing market is adversely affected. Protests by Realtors are being answered by appraisers. Testimony before Congress indicated their task is protecting the public trust by providing the lender an idea of value and that appraisers are the only party with no vested interest in the appraisal.

This is a situation that will continue to be addressed, as each side has valid concerns about appraisals in untested waters. In the meantime, prices of distressed properties are rising. That will help boost the results of newer appraisals as they are done.

What Specific Services are Performed by an Appraiser?

February 29, 2008 by Lance Mohr

If you are considering buying or selling a home in Tampa Bay, you may have at least some knowledge of what an appraiser does in the home purchase process. However, even with that said, you may not know of all of the services that an appraiser can perform when it comes to the buying and selling of a home. The reality is that the typical appraiser actually does perform a significant number of different services when it comes to the buying and selling of residential property.

Of course, it is clear and has been mentioned that an appraiser provides residential and commercial valuation estimates associated with real estate. Indeed, there are now even appraisers that specialize specifically in certain types of real estate exclusively. In addition, appraisers are also involved in resolving valuation issues associated with estate planning and estate settlements.

Appraisers are also heavily involved in tax assessments and advice, are involved in eminent domain and condemnation proceedings and determining property values related to these proceedings and appraisers are also involved in dispute resolution – divorces, property partition suits, foreclosures, zoning cases and so forth.

In the 21st century you will also find appraisers involved in feasibility studies, expert witness testimony in judicial proceedings and market rent and trend studies and assessments. Appraisers are active in the area of cost and benefit as well as investment analysis. Appraisers are involved with land utilizations studies and supply and demand studies as well. There are other areas in which appraisers are also involved in this day and age. Indeed, they actually are involved in many different types of projects, really too many to mention in a short article.

By understanding the different ways that an appraiser can be helpful to you, you will be able to know when to seek professional assistance from these experts. There are some other important tips that you will want to keep in mind when it comes to appraisers. You need to consider these important pointers before you actually begin the task of seeking an appraiser to engage for your particular needs.

First of all, when it comes to engaging an appraiser, you will want to make certain that your appraiser duly is certified. Second, you will want to make certain that your selected appraiser must have the specific experience in the area in which you are seeking these types of professional services. Finally, you will want to make certain that you engage the services of an appraiser that has a strong reputation and that is very reputable.

In other words, before you engage the services of an appraiser you will want to make certain that you do your home work to find the most qualified, reputable and experienced expert to serve your specific needs, goals and objectives. By doing your homework and by looking around, you will be ensured that you accomplish your goals and objectives with all of the necessary professional support that you do need and require.

What Specific Services are Performed by an Appraiser?

December 12, 2007 by Lance Mohr

real estate appraisal image If you are considering buying or selling a house in Tampa, you may have at least some knowledge of what an appraiser does in the home purchase process. However, even with that said, you may not know of all of the services that an appraiser can perform when it comes to the buying and selling of a home. The reality is that the typical appraiser actually does perform a significant number of different services when it comes to the buying and selling of residential property.

In the 21st century you will also find appraisers involved in feasibility studies, expert witness testimony in judicial proceedings and market rent and trend studies and assessments. Appraisers are active in the area of cost and benefit as well as investment analysis. Appraisers are involved with land utilization studies and supply and demand studies as well. There are other areas in which appraisers are also involved in this day and age. Indeed, they actually are involved in many different types of projects, really too many to mention in a short article.

First of all, when it comes to engaging an appraiser, you will want to make certain that your appraiser is certified. Second, you will want to make certain that your selected appraiser must have the specific experience in the area in which you are seeking these types of professional services. Finally, you will want to make certain that you engage the services of an appraiser that has a strong reputation and that is very reputable.

In other words, before you engage the services of an appraiser you will want to make certain that you do your homework to find the most qualified, reputable and experienced expert to serve your specific needs, goals and objectives. By doing your homework and by looking around, you will be ensured that you accomplish your goals and objectives with all of the necessary professional support that you do need and require.

Getting Ready for an Appraisal of Your Home

December 4, 2007 by Lance Mohr

Throughout your life you likely have heard of the importance of preparation. Simply, one of the most fundamental principles associated with success if being prepared. If you are contemplating the sale of your house in Tampa Bay, you likely are also considering obtaining a professional appraisal of your property. If that is the case, there are some important steps that you need to take when it comes to getting your home ready for an appraisal.

One mistake that some people make when preparing for an appraisal is to do nothing in advance of appraiser coming to the property to do his or her work. The reality is that there are some steps that you can and should take not only before you put your property onto the market for sale but before you even have the appraiser come over to perform a valuation on the property.

The first thing you will want to do when it comes to getting ready for an appraisal of your home is to make certain that all of the cosmetic repairs that need to be done are completed. This includes making sure that the paint on both the inside and the outside of the house is in good condition. While a fresh coat of paint does not per se increase the value of the house, when a home appears in its finest form, the value will be enhanced at least to some degree.

The second thing that you will want to undertake in advance of getting an appraisal of your home is to make certain that any significant repairs that need to be dealt with are completed. More serious problems with your residence, items that do need to be repaired, can have a negative impact on the overall value of the property if they are not dealt with in advance of an appraisal.

The third step that should be taken when preparing for an appraisal is to have a second set of eyes take a look at your home. This should be an individual who does not live in your home and who is not intimately familiar with your home. By having another person give your home a good once over in advance of the appraisal itself, you will have one other mechanism available to you through which you will be able to have identified any problems with the property that need correcting and that you may have overlooked.

In the end, by taking the time to follow the steps and pointers that are set forth for you here, you will be in the best possible position to ensure that your home is in the best possible condition in advance of the actual appraiser. While each of these steps may result in only minor improvements to your residence. However, when taken together, all of these pointers can put you in the position of having the best possible appraisal of your home.

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Lance Mohr & Team

appraisal

Appraisers – Why They Do Not Determine Value…

The Best Way To Get A Home To Appraise

Florida Real Estate Recovery Continues Despite Appraisal Problems

Conditions Set by Clients

Getting What You Pay For

Problems with Slow Closures

Lack of Comparable Sales Affects Appraisal Value

Lack of Comparable Sales Affects Appraisal Value

What Specific Services are Performed by an Appraiser?

What Specific Services are Performed by an Appraiser?

Getting Ready for an Appraisal of Your Home

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