A. M. Appraisals has answers to "Frequently Asked Questions"
A. M. Appraisals is more than happy to address any concerns you might have about appraisals in West Columbia and Lexington County.
Feel free to contact us today.
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An appraisal report is an investigation leading to an opinion of value.
There are three "common approaches to value" which assists the appraiser conclude this opinion or valuation.
One of the methods is the Cost Approach - which is how much capital would be required to replace the improvements, less physical deterioration and other factors, then adding the land value.
Another of the approaches is the Sales Comparison Approach - which involves discovering a comparison to other similar nearby properties which have recently sold.
Being the most common approach, the Sales Comparison Approach is considered the most precise and best indicator of market value for a property.
The Income Approach is primarily used for figuring out the market value of income-producing properties based on what an investor would pay based on the amount of capital a property produce.
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An appraiser provides a professional, unbiased opinion of market value, in the support of real estate exchanges.
Appraisers demonstrate their analysis in appraisal reports.
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There are a lot of reasons to purchase an appraisal from A. M. Appraisals with the most common reason being real estate and mortgage transactions.
Other reasons for ordering an appraisal include:
If you are applying for a loan.
To lower your property taxes.
To help a homeowner realize if they owe less than 80% of their home's value and remove insurance.
To contest inflated property taxes.
If you need to take care of an estate.
To provide you a negotiating tool when purchasing a home.
To determine an honest property value when selling your home.
To ensure parties are provided just compensation in eminient domain cases.
Government agencies such as the IRS require an appraisal on every property.
It's possible you could have to deal with being in a lawsuit - an appraisal will help.
Click here for a more extensive explanation of the process of getting an appraisal.
The appraiser is not a home inspector and he or she does not do a comprehensive home inspection.
A third-party home inspector will investigate the structure of the home, from the roof to the foundation.
The usual property inspector's report will include an evaluation of the condition of the home's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and accessible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.
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Honestly, they share nothing in common.
The CMA relies on indefinite local market trends.
Appraisals use comparable sales which are verifiable resources.
Area and construction prices are also a priority in an appraisal.
All a CMA does is generate a "ball park figure."
Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value.
The person creating the report is frankly the biggest difference between a CMA and an appraisal.
Real estate agents produce CMA's, and they don't always know the whole market or have specific competence when it comes to home valuation.
The appraisal is created by a licensed, certified professional who has made a career out of valuing properties.
Moreover, the appraiser is an independent voice, with no conditional interest in the value conclusion, unlike the real estate agent, whose income is tied to the price of the home.
Every appraisal should demonstrate a supported value opinion and will document the following:
The client and other intended users.
The intended use of the report.
The appraisal's purpose.
The type of value reported and a definition of that value.
The effective date of the appraisal.(Sometimes this is in the past or maybe the future for new construction!)
Relevant property attributes, including: location, physical attributes, legal attributes, economic attributes, the property rights valued, and non-real estate items included in the appraisal, such as personal property, items that are more or less permanently installed and even intangible factors.
All known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and the like.
Division of interest, such as fractional interest, physical segment and partial holding.
The scope of work used while working up the appraisal.
For a more detailed look at what goes into an appraisal report click here: Sample Appraisal Report
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In the documentation of an appraisal, each appraiser must see to it that each of the items below are covered:
The appraisal contained an apropos analysis of the information.
Whether individually or collectively, there were no significant errors contained in the appraisal, nor any material details left out.
That appraisal services were not executed in a careless or negligent fashion.
That a believable, substantiated appraisal report was conferred.
To become a state licensed appraiser, we must meet considerable education and experience requirements that enable us to formulate an unbiased opinion.
Plus, appraisers must obey a stringent industry code of ethics and respect national standards of practice for real estate appraisal. The rules for carrying out an appraisal and reporting its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).
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Mortgage lenders are an appraiser's most likely customer, requesting their services to ensure property involved in a mortgage transaction is enough to cover a loan balance in the case of default.
Attorneys and CPAs also hire appraisers for divorce and estate settlements.
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One of the primary activities of an appraiser is to compile property data.
Data can be divided into Specific or General. Specific data is collected from the property itself; Location, condition, amenities, size and other specifics are documented by the appraiser during an inspection.
General data is gathered from a numerous places.
Local Multiple Listing Services (MLS) have data on recently sold homes that could be used as comparables.
Tax records and other courthouse documents reveal actual sales prices in a market.
Appraisers routinely have to report when a property is in a flood zone, and that information is retrieved from a FEMA data outlet such as a la mode's InterFlood product.
And last but not least, the appraiser assimilates general data from his or her collective knowledge gained from doing assignments for other properties in the same market.
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An appraisal is a worthwhile anytime your home's value is relevant to a financial decision.
For those selling a home, you'll want to determine a price that gets you the most profit but doesn't leave your home on the market too long; an appraisal can help with that.
If you're buying, it makes sure you don't overpay.
For parties settling an estate or divorce, an appraisal from A. M. Appraisals is the best way to ensure assets are split up properly.
Simply put, a home is often the single, largest financial asset anybody owns. Don't make decisions in the dark with a professional appraisal.
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PMI is an acronym for Private Mortgage Insurance.
This additional plan takes care of the lender if a borrower is unable to pay on the loan and the market price of the home is less than the balance of the loan.
You can have your PMI dropped once you've achieved 20% equity in your home through appreciation and principal payments.
Is PMI a lineitem in your monthly mortgage payment?Call A. M. Appraisals today at (803) 739-2176 or send us an e-mail. Documentation of your home's present value could save you thousands.
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The first step in most appraisals is the home inspection.
What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general status of its features.
The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house (gates aren't locked, etc). Trim any bushes and move any items that would make it difficult to measure the structure. Indoors, make sure we can get to appliances like furnaces and water heaters.
The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
Written property agreements, such as a maintenance easement for a shared driveway.
Any paperwork, such as a title policy with information on encroachments or easements encroachments or easements.
Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, your septic system and your well.
A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending".
Most recent real estate tax bill from Lexington and or legal description of the property.
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In real estate appraising, Market Value is commonly defined as:
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
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In most real estate transactions, the appraisal is ordered by the lender.
Even though it's the buyer that eventually pays for the report, the lender is the intended user. The
buyer is certainly entitled to a copy of the report - it's usually included with all the other closing documents - but is not allowed to use the report for any other purpose without permission from the lender.
It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage.
In these scenarios, the appraiser may state the purpose of the appraisal; for PMI removal, or estate planning or tax challenges, for example. If not stipulated otherwise, the home owner can use the appraisal for any purpose.
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A home's location - what city it is in and even what part of that city - is key to this popular question.
For example,
if you live in a cold region, insulated windows can be a real plus. But they aren't as attractive in a warm-weather climate.
No matter where you go, however, renovating a kitchen is almost always a safe move.
One recent study revealed that putting $20,000 into a kitchen remodel would add about $17,500 to the value of the home - or about an 88% return on investment.
Bathrooms weren't far behind, yielding 85%.
Adding bedrooms and baths can also boost the value of your home as long as your home doesn't then become an oddball for your neighborhood in terms of size.
A. M. Appraisals PO Box 2493 West Columbia, SC 29171
