Zaloom Appraisal Associates, LTD

What is a home appraisal?

A home appraisal is a survey of a home by a professional licensed appraiser for their opinion of the property market value.

Reasons to get an appraisal

An appraisal has become an understood and accepted part of every real estate transaction in the United States.  Bringing in an expert to make sure you're not spending too much on a property.  That's the main reason for obtaining an appraisal, but it's not the only reason that using the services of a licensed, professional appraiser is a good idea.

* Purchase of a Home

In order to make an informed offer to purchase, one must develop an opinion of what a property is worth.  It is the job of the licensed professional appraiser to determine market value by gathering, analyzing and applying information pertinent to a property.  By hiring a professional appaiser you can give yourself "peace of mind" that you're offering a fair price for the property.

* Refinance or Obtain a Home Equity Loan

If you need to consolidate bills, have a college tuition to pay, or just want to tap into the equity of your home, you'll need a new loan.  In order to obtain a new loan many banks requires a new appraisal of the property.

* PMI Removal

When the amount being loaned is more than 80% of the value of the home many lenders require that home buyers purchase Private Mortgage Insurance or PMI.  This additional payment is normally folded into the monthly mortgage payment and is quickly forgotten.  PMI becomes unnecessary when the remaining loan balance dips below the 80% level.  This dip can occur through market appreciation or principal paydown.  In 1998, the United States Congress passed the Homeowner Protection Act which requires lenders to remove PMI payments when the loan to value ration conditions have been met.

Think you've met the 80% loan to value ratio?  A professional appraiser can, for a nominal fee, provide you with a statement regarding the home value and help you file a challenge with your mortgage company.  The costs of these services will be recovered in just a few months of not paying the PMI.

* Divorce Settlement

A divorce can be a difficult experience for all involved.  Deciding "Who Gets the House" can further complicate the situation.  In many cases, the Court will order the sale of the home so each party gets an equal share of the equity.   No matter how amicable the breakup is, it is always a good idea to have an appraisal done so both parties are fully aware of  the true market value of the property.  If the decision is to sell the home, the parties will have a better idea of what price to set.  If one party decides to buyout the other, both sides will feel like they've gottena fair deal.

* Estate Liquidation

It is difficult enough to lose a loved one without the added stress of trying to fairly dispose of the estate.  In many cases the family home comprises the  largest portion of the estate value.  Disposing of the property for a price that pleases all the parties involved can be a daunting task.  That is where a professional appraiser can help.  The appraiser will determine the home's true market value so everyone involved will feel that they received their fair share.

* Relocation

Worrying about all the details involved in relocation can be overwhelming.  Establishing the true maket value of your house, shouldn't be one of them. An appriser will, at your convenience,  do a thorough inspection of your property and give you its true value.

* Home Improvements

Wondering if you should do some remodeling, before putting your house up for sale?  While some improvements may add to the home's appeal, not all are worth the costs involved.  An appraiser can tell you which improvements will add to the home's value.

* Selling A Home

The services of a professional appraiser can help you make an education decision on how to price your home and whether or not to make improvements before selling.  The appraiser is an objective party who has no stake in what your home sells for.  Unlike a real estate agent, who's commision is tied to the sale price, the appraiser's fee is based solely on the amount of work needed to complete the report.

How long should an appraisal take?

The actual inspection of a property being appraised can take from 15 minutes to as many as several hours.  The appraiser must then study the surrounding neighborhood. They must then do a search of comparable sales within a proper time period.  The research time after the physical inspection can vary depending on availability of data.

What kind of training is required to become an appraiser?

Requirements vary from state to state however most states mandate that all real estate appraisers must be licensed or certified. Part of the process includes extensive education followed by on the job experience. Industry standards are provided and  and must be adhered to. Each appraiser is also expected to follow a code of ethics.

What information is used for appraisals?

Appraiser use a wide variety of data including but not limited to local MLS information, local real estate information provided by professionals, In House data, local tax assessor information, private and public data, and the appraisers experience and personal knowledge.  All information is weighed out and considered for accuracy and reliability.

What does the appraiser look for?

He needs to document the condition of the property both inside and out, from the layout and features to degrees of modernization, including updates as well as the overall quality of construction.
He is not and ENGINEER, ARCHITECT, ELECTRICIAN, PLUMBER, OR WHOLE HOUSE INSPECTOR.  The appraiser briefly walks through the house to get an idea of the general condition and room count.  He/she upon inspection will ask about any visible problems and those that may not be visible.  He will then do his/her best to gauge any impact on value attributable to those problems. The property owner is encouraged to seek the advice of experts if they have any questions about structural or mechanical aspects.

If the appraisal comes out higher than my tax value could my real estate taxes go up?

ABSOLUTELY NOT!  The appraiser is required to maintain confidentiality with the client, which would be you (if you undertook the appraisal)  or the bank (in a mortgage related appraisal) or court (in a marital divorce, bankruptcy) situation, and attorneys, not the local tax authorities.

FINALLY..HOW CAN I HELP THE APPRAISER TO COMPLETE MY APPRAISAL?

On the day of the appraisal if you could have on hand a survey of the house or property, filing permits needed (if any renovations or additions have been done to alter the original plans and specifications).  If renovations have been completed a copy of the new C/O (Certificate of Occupancy) issued to you the property owner.  Also helpful a list of recent improvements/cost as well as any other information you may feel is pertinent.