How to Hire an Independent Home Appraiser and When you Would Want To

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How to Hire an Independent Home Appraiser and When you Would Want To

If you own real estate, there will come a time when your property will need to be appraised. You will need to know how to choose a home appraiser. Whether you are buying or selling a property, trying to take your Mortgage Loan Insurance (PMI) payment off, or withdrawing equity through a HELOC or refinance program, a home appraisal will define the existing value of the home.

Some situations may allow the buyer or seller to contract their own independent home appraisal, while others require a prequalified third-party supplier. Before you go out and sign your own home appraisal, consider when and how to choose a home appraiser.

 

What is a home appraisal procedure, and what is it based on?

A home appraisal is an unbiased and unbiased assessment of the value of a property at any given time by a licensed commercial real estate appraiser. A formal appraisal of a home is similar to a Comparative Market Analysis (CMA) in that it derives the property’s value based on its condition, market conditions, and recent sales of similar properties nearby. But it is often considered more precise because of its impartiality.

A home appraisal can be ordered independently by an owner or potential buyer, or it can be ordered by a lender or a third party company. If you need an appraisal, it’s important to know when you can and can’t hire an independent home appraiser.

 

When you can’t hire your independent home appraiser

Generally, you cannot hire an independent home appraiser when a bank or lending institution is involved. Banks often believe that there may be a bias in an independent valuation report when commissioned by the seller or potential buyer.

To be fair, they will order their own third-party appraisal to infer the true value. The appraisal will revert to par, high or low relative to the purchase price or the appraised value of the property and will help the bank to ensure that it is not lending more than the value of the property.

The cost of this appraisal is usually passed on to the buyer or owner and can be built into the closing costs or the loan amount.

You can hire your own independent appraiser, but the bank will not consider or use it in their loan underwriting or approval process.

 

When you can hire an independent home appraiser

There are times when you might want to hire your own independent home appraiser – the most obvious being if you want an accurate picture of your home’s value. You might want to refinance but don’t know what your property’s current value is. Or you are preparing your property for sale and want to determine an appropriate list price.

You may also want or need to hire an independent appraiser to appraise your home if you file for bankruptcy and plan to take out a second mortgage because the total debt is greater than the value of your property.

If you hire your own appraiser, remember that the results can be provided to potential buyers or the bank, but they will rarely be considered.

 

How much does it cost you to hire an independent home appraiser?

An independent home appraisal can range from $300 to $500, depending on the condition you are in and the size of the property. For many people, the cost of an independent home appraisal is not worth it when they can receive an appraisal, like a CMA, from a real estate agent.

If you desire to order a formal appraisal, search for certified appraisers in your state. Read company reviews and learn about the experience and expertise of the appraiser in your area. Just because a company is recommended does not mean that the appraiser who performs the valuation is reputable.

If somebody is new to the inexperienced or field, the appraisal might be an incorrect representation of your property’s value. Look for somebody who has experience in real estate appraisal or offers nationwide property and appraisal services and someone who knows your market or neighborhood.

 

Consider a CMA or BPO first

In most cases, a formal appraisal will give the most accurate assessment of your property’s value. But depending on what the appraisal is used for, it may not be a good idea to commission your own appraiser. Independent house. If you need to know the value of a property, consider doing rem

 

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