Target appraisal services has answers to "Frequently Asked Questions"

Define the term "Appraisal"


	Target appraisal services is ready to handle any concerns you might have about appraisals or real estate in Hillsborough County. Contact us today to talk about how we can help you with your valuation problems.

What does an appraiser do?
Why would someone require a real estate appraisal?
What is the difference between an appraisal and a home inspection?
Is an appraisal the same as a comparative market analysis(CMA)?
What are the contents of an appraisal report?
After completing the appraisal, what assurance is there that the value conclusion is trustworthy?
How hard is it to become certified?
Who do appraisers work for?
Where does Target appraisal services get the data used to estimate values in Hillsborough County or other areas?
What can a full appraisal do for me?
My mortgage statement has an item on it for PMI? Can I get rid of that?
How do I get ready for the appraiser?
What does "Market Value" mean?
Once complete, who actually owns the appraisal report?
Are some home improvements more worthwhile than others?

Define the term "Appraisal"

The process of writing an appraisal report deals with an investigation which forms an opinion of value. This opinion or estimate is arrived at using a formal process that commonly utilizes three "common approaches to value". The Cost Approach is one of the methods that real estate appraisers use to find value; it involves concluding what the improvements would cost less physical depreciation, plus the land value. The Sales Comparison Approach deals with searching for similar properties nearby and finding value based on making a comparison of those homes to the property being appraised. The Sales Comparison Approach is commonly the most accurate and best indicator of value for a home. The third approach is the Income Approach, which is the best method in appraising income producing properties - it involves estimating what an investor would pay based on the money generated by the property.

What does an appraiser do?

An appraiser forumlates a fair and credible opinion of market value, to be used in making real estate transactions. Appraisers demonstrate their professional findings in appraisal reports.

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Why would someone require a real estate appraisal?

There are a lot of reasons to get an appraisal from Target appraisal services with the usual reason being real estate and mortgage transactions. A few other reasons for obtaining an report include:

To get a loan.
To lower your tax burden.
To show a homeowner has 30% equity and remove Primary Mortgage Insurance.
To contest high property taxes.
To deal with an estate.
To offer you a negotiating tool when purchasing a home.
To find a likely sales price when listing your home.
To defend your rights if your property is being taken by means of eminent domain in a condemnation case.
Government agencies such as the IRS need an appraisal on every home.
If you are ever involved in a lawsuit.

If you need more information regarding the appraisal process, please (List of questions)click here.

What is the difference between an appraisal and a home inspection? (List of questions)

Appraisers do not do complete home inspections and are not home inspectors. The point of a home inspection is to evaluate the structure of the property from bottom to rooftop. For the most part, a home inspection report will discuss the amenities and the requirements of the house: air conditioning (weather permitting), electrical functions, the condition of the heating system, the plumbing; then the structural integrity of the home such as the attic, visible insulation, walls, floors, ceilings, windows, then the foundation, basement and visible structures.

Is an appraisal the same as a comparative market analysis(CMA)?

Simply put, it's like comparing broadband and dial-up. The CMA relies on vague market trends. An appraisal is based on comparable sales that can be validated by records. The appraisal report will also include area and construction values. A CMA delivers a "ball park figure." An appraisal delivers a defensible and carefully documented opinion of value.

The credentials of the person creating the report is frankly the most significant difference between a CMA and an appraisal. Real estate agents, who may not have a complete understanding of valuation methods or the entire market, write CMA's. A certified, state licensed professional who has formed a career on valuing homes in and around Hillsborough County creates the appraisal. Further, the appraiser is an unbiased party, with no conditional interest in the value of a home, unlike the agent, who gets a commission based upon the price of the home.

What are the contents of an appraisal report? (List of questions)

The main point of an appraisal document is to provide a value opinion, and depending on the scope of the report, one will customarily see the following:

Who engaged the appraiser and other intended users.
How the appraisal is supposed to be used.
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!)
Characteristics of the property that have a bearing on the value, including: location, physical description, legal attributes, economic factors, the property rights valued, and non-real estate items included in the appraisal, such as personal property, trade fixtures and even intangible items.
Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
Division of interest, such as fractional interest, physical segment and partial holding.
The scope of work used to complete the assignment.

For a more detailed look at the work that goes into an appraisal report click here: Sample Appraisal Report

After completing the appraisal, what assurance is there that the value conclusion is trustworthy?

In communicating an appraisal report, each appraiser must ensure the following:

The appraisal contained a suitable analysis of the data.
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 manner.
The final appraisal report was understandable, legitimate and defensible.

To become a state licensed appraiser, we must meet considerable education and experience requirements that train us to formulate an unbiased opinion. In addition, appraisers must follow a strict industry code of ethics and comply with national standards of practice for real estate appraisal. The guidelines for working up an appraisal and communicating its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).

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Regulations regarding licensing and certification of Real Estate Appraisers are different from state to state. In general, licensing and certification is commonly associated with many hours of classroom study, tests and real world experience. Once licensed, he/she is required to take continuing education courses so that the license doesn't expire. To see the specific requirements for any state

Who do appraisers work for?

Typically, appraisers are called upon by mortgage lenders to render a value opinion on property involved in a loan transaction - to make sure the house is truly adequate collateral for the loan. Appraisers also provide opinions for legal settlements, tax matters and investment decisions.

Where does Target appraisal services get the data used to estimate values in Hillsborough County or other areas?

One of the most important tasks an appraiser performs is to assimilate data. Data can be divided into Specific or General. Specific data is from the home itself; Location, condition, amenities, size and other specific data are noted by the appraiser during an inspection.

General data is received from a variety of places. To research recently sold homes to be used as "comps", we often use the local Multiple Listing Service. Tax records and other courthouse documents verify actual sales prices in a market. Appraisers often need 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 gathers general data from his or her past experience in doing assignments for other houses in the same market.

What can a full appraisal do for me?

An appraisal is a worthwhile whenever your home's value is relevant to some financial decision. For those selling a home, you'll want to figure out 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. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. A house is often the single, largest financial asset anybody owns. Without knowing its real value, wise financial decisions are impossible.

My mortgage statement has an item on it for PMI? Can I get rid of that?

PMI is the common abbreviation for for Private Mortgage Insurance. This additional policy guards the lender if a borrower is unable to pay on the loan and the market price of the house is lower than what the borrower still owes on the loan. Once you reach the point where your home's equity plus the amount you've paid is at least 20% of your loan balance, you can have your PMI dropped.


	Does your monthly loan payment include a fee for PMI?Call Target appraisal services today at 888-868-1112 or send us an e-mail. Documentation of your home's present value could save you thousands.

How do I get ready for the appraiser?

The first step in most appraisals is the property inspection. During this process, the appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home's general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house . Trim any shrubs and move any items that would make it difficult to measure the structure. On the inside, make sure the appraiser can get to items like furnaces and water heaters.

You can make our visit go faster and improve the accuracy of the appraisal report by having the following things on hand:

A survey or plot map of the property and building (if readily available).
Written property agreements, such as a maintenance agreement for a shared driveway.
Any paperwork, such as a title policy with information on encroachments or easements encroachments or easements.
Brag sheet that lists major home improvements and enhancements, the date of their installation and their cost (for example, the addition of Insulation or roof repairs) and permit confirmation (if available).
Information on "Homeowners Associations" or condominium covenants and fees.

What does "Market Value" mean?

In real estate appraising, Market Value (as opposed to Fair Market Value) is

Once complete, who actually owns the appraisal report?

In most real estate transactions, the appraisal is ordered by the lender. While the buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The buyer is entitled to a copy of the appraisal - it's usually bundled with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender.

It's different when it's the homeowner hiring the appraiser for things outside securing a mortgage. In these situations, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stated otherwise, the home owner can use the appraisal for any purpose.

Are some home improvements more worthwhile than others?

The answer to this is different depending upon the location of the home. For example, while quality appliances are attractive, a $7000 built-in refrigerator won't pay off in a neighborhood of moderately priced homes

As a rule, the best ROI from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms weren't far behind, yielding 85%. On the contrary, something that may not increase your value would be painting just for the sake of redecorating. (List of questions) (List of questions) (List of questions) (List of questions) (List of questions) (List of questions) (List of questions) (List of questions)click here.

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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Target appraisal services 32 Merrimack St Hudson, NH 03051

Phone: 888-868-1112 Fax: 888-868-1112 E-mail: appraiser@targetappraisals.com