The Responsibilities of a Real Estate Appraiser

Written by Posted On Sunday, 30 August 2015 13:38

What is a Real Estate Appraisal?

A real estate appraisal is an opinion of value provided by a professional in the field of appraisals. Preparation for an appraisal can involve a number of matters:

  • Appropriate research into market areas
  • Assembly and analysis of collated information which is pertinent to a property
  • The experience, professional judgment, and knowledge of an appraiser

 

Any type of property may undergo an appraisal – apartments and condominiums, single-family homes, shopping centers, industrial sites, farms, office buildings, and more. There are variable reasons for a real estate appraiser to carry out an appraisal such as when a property is sold, insured, developed, mortgaged, or taxed.

     To provide some examples, an appraisal is prepared for:

  • The purposes of mortgage lending
  • Tax and appeals of tax assessments
  • The negotiations between sellers and buyers
  • Governmental acquisition of private property to be utilized for public use
  • A business merger or business dissolution
  • Negotiations over a lease

 

The Appraiser’s Role

A real estate appraiser provides impartial, unbiased, and objective opinions with respect to the value of real property. He or she offers assistance to persons who wish to manage, own, invest in, sell, and/ or lend money based on a real estate’s security.

Appraisers will assemble statistics, facts, as well as other information that pertain to a specific property. They will then analyze this data, which will allow them to develop pertinent opinions with respect to value.

Each real estate appraisal assignment tests the appraiser’s capacity to use their analytical skills, to communicate successfully, and to exercise good judgement based on their expertise.

 

Should a Real Estate Appraiser have Qualifications?

It is a requirement by all states that appraisers either be certified or licensed prior to the provision of appraisals for federally regulated lenders. A number of states also insist on an appraiser being either certified or licensed in order to provide appraisals for non-federal parties, too.

To become certified or licensed, it’s a requirement to pass an examination which is overseen by your particular state’s appraisal board. Nevertheless, state requirements do vary, and therefore it is advisable to discuss the specific requirements with your respective state’s regulatory agency.

The AQB or Appraiser Qualifications Board of The Appraisal Foundation has been commissioned by Congress to inaugurate minimum requirements for classifications of Certified Residential Real Property Appraiser and Certified General Real Property Appraiser, while the AQB has established minimum requirements for both Trainee and Licensed Real Property Appraiser classifications.

For more information on these four categories, it is advisable to visit The Appraisal Foundation web site.

 

 

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