How to Find a Property Appraiser

When it comes to finding a real estate appraiser, many homeowners don't know what to look for. This article describes five things to look for in a property appraiser.

Steps

1. Always make sure a property appraiser is licensed or certified by the state to perform real estate appraisals. While state licensing and/or certification isn't always an indication of quality, it ensures that an individual has met certain standards and is authorized to perform property appraisals. Some states do not require licensing to perform real estate appraisals. It is unwise to use the services of any professional who is not licensed or certified.
2. Don't be afraid to ask an appraiser for a copy of his or her license. A good appraiser will readily provide this documentation. Copies of licenses are commonly requested by mortgage brokers and loan officers. Once you get a copy of the license, it's a good idea to check with the government agency which issued the document to ensure the license is active and in good standing. Furthermore, you can view the National Registry at http://www.asc.gov and verify whether the appraiser is registered and eligible to perform appraisals.
3. Ask the real estate appraiser what percentage of their work is performed in the neighborhood in which the property is located. Appraisers who do a lot of their work or live in a particular area often have a deep knowledge of property values in that area. Additionally, they are more likely to know how "neighborhood variables" such as school districts and fire departments affect the property values in the area.
4. Find out if the property appraiser has experience performing appraisals for consumers as opposed to real estate professionals. Mortgage brokers and loan officers have distinctly different needs than homeowners. An appraiser who understands the needs of homeowners is more likely to help you learn about the appraisal process and answer questions you may have along the way.

Tips

* Many excellent real estate appraisers carry a professional designation. The most widely known industry designations are SRPA, SRA and MAI. These designations are issued by the Appraisal Institute, and demonstrate an appraiser's commitment to continuing education and ethical standards. Oftentimes, the standards required to obtain these designations exceed those set forth by state licensing/certified requirements.

Warnings

* If you are selling your home and want to know what price you should ask and what your marketing time will be a conventional appraisal is not enough. Let the appraiser know what you are using the appraisal for and ask what they will do to help you. If it does not sound like enough call another appraiser. An appraisal is an unbiased opinion of value and an experienced appraiser will help you sell your home by showing what exactly the market is doing. A realtor works to obtain a listing and may say that your home is worth more than it really is just to procure a listing. The first step in selling a home should be to contact an independent and unbiased appraiser especially in a volatile market.
* Don't give an appraisal more credence than it deserves. Appraising is mostly subjective, not the hard science many lay people believe it to be. The estimated value of a given property is a value reflective of the current market and is completed using historical data. The effective date is reflective usually of the date of inspection and is typically the cap for the date of sale that a potential comparable may have. A current market value does not predict the future and a good appraiser will recognize the intended user as a consumer and write a detailed explanation of market trends.
* Market reactions to properties are often emotional, particularly for unique properties, and so forming an opinion of value is not an exact science.
* An appraiser will provide their personal opinion of value, based on their estimate of the market's reaction, but other appraisers will have varying opinions and sometimes the market reacts in unexpected ways. An appraisal is no more accurate than other predictions of human behavior.
* No, appraisal is not an exact science but if done properly can give a credible result. Through market analysis a trained appraiser can give an opinion of value which can be relied upon. Without appraisers fraud would be rampant in the industry and cause such things as the S&L crisis in the early 90's.
* Be careful when the real estate agent for the seller or the seller recommends the appraiser for they may have conflict of interest.