- A appraisal is needed when a seller, mortgage lender, or tax assessor want to find out the estimated value of the property.
Example: Sellers want to know what their property offers to the marketplace, and buyers want to know if they are getting a fair deal based on other properties in the market.
Examples of Types of Appraisals
- Uniform Residential Appraisal Report( Freddie Mac Form 70): This is the standard appraisal. It requires an interior and exterior inspection of the subject property.
- Individual Condominium Unit Appraisal: This is the standard form of appraisal for condominiums.
- ERC Appraisal: This is used for relocation of appraisals. It is used to report the appraiser's estimate of the anticipated selling price of a property.
Below is a link that contains links of the actual forms used for the types of appraisals mentioned above.
With the increase of information available online, the need for appraisers should remain stable. I believe that no matter how many pictures or details are provided on paper, there will always be a need for the expertise of a certified real estate appraiser. The regulations, both federal and state, put in place are the backbone for the general society's trust in real estate appraisers. These regulations ensure that people engaged in appraisal services do so in a competent and professional manner. The Appraisal Foundation was created as a non-profit educational organization with the purpose of promoting professionalism in the appraisal industry.
The guidelines adopted by the Appraisal Qualifications Board, a group that established minimum education requirements, established four different appraiser categories in an effort to promote levels of specialization.
- Trainee Appraiser: The most basic form. It requires at least 75 hours of classroom instruction. However, there is no experience requirement.
- Licensed Real Property Appraiser: Authorized to perform appraisals involving complex one- to four-unit residential properties in transactions of less than $250,000. They can also perform non-complex one- to four unit residential properties in transaction of less than $1 million. Also, they must have completed 150 hours of classroom instruction, written examination, and 2,000 hours of appraisal experience.
- Certified Residential Appraiser- There is no transaction limitations. They must have completed 200 hours education and 2,500 hours in experience.
- Certified General Appraiser- They can appraise any type of property. Must have completed 300 hours in the classroom and at least 3,000 hours of appraisal experience.
Below is a link to a website that can be used to begin attaining a real estate appraisal license. There is a link for continuing education, which is very important for appraisers to do in order to ensure they stay up to date with the market regulations. Online courses are available as well so that a individual can complete their education at their preferred pace.
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