My New Blog

Many people wonder when I should get an appraisal and what are the differences in appraisals.  First, lets discuss timing.  An appraiser's job is to find out why or what is the intended use of the appraisal assignment.  This is very important when ordering the appraisal.  The appraiser can discuss what types of appraisals are available or if you need an appraisal at all.  Many times I have had callers want an appraisal in which to set a sales price when placing the property on the market.  I ask the caller many questions about the property and how the owner is intending to market the property.  Many times callers have a typical tract house in a subdivision and are going to market the property thru a realtor.  I tell the caller that they may not need an appraisal.  What they need to do is call on a good reputable realtor and council with them on marketing strategies and pricing.  Ask the listing broker to perform a brokers price opinion.  This is part of the listing process and the seller will not be charged an appraisal fee.  If the BPO is performed correctly, the seller will have a good knowledge of typical sales in their subdivision together they can decide the sale price and marketing strategy.  I tell the caller that if they cannot decide on a price or marketing strategy, then call me for the appraisal at that time.  Now if you have a unusual property or a limited market, then it is best to get an appraisal to determine a sales price.  If this be the case, then there are two types of assignments, one being a restricted appraisal and the other being a complete appraisal.  Restricted appraisals are very limited in the reporting of data of the subject property.  The data, while limited, does have to be complete enough for the reader to fully understand the methodology of the appraiser.  This appraisal is for the clients eyes only due to the restricted nature of the assignment.  That means that the report is not valid for any transaction as it is written as only a tool for the client for his personal use.  Generally these reports are cheaper than a complete appraisal but they have no use but for an individual's personal information.  This appraisal is a good tool for consideration in a sales price but this appraisal is not intended to be presented to others when marketing the property.  Now if one wants to use the appraisal as a marketing tool then a complete appraisal is the only choice.  Many appraisers do not fully discuss options to callers not discuss the intended use.  This is not proper for the appraisal business and is violation of the Uniform Standards of Professional Appraisal Practice.  So remember, if you think you need an appraisal, make sure you fully discuss your needs and intended use with the appraiser.  Do not just call and say how much will you charge to appraise my house and how soon can you do it.  a little discussion may save you lots of money.  I do talk many callers out of appraisals when they list saving them many dollars.  But it is funny, these callers many times will call me again when they really need my services.