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Appraisals
The Basics
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A complete and accurate
appraisal of real estate is a crucial step in the underwriting
process, is essential to evaluating collateral risk, and is in the
best interests of all parties concerned.
The
most common reason for appraisals have to do with real estate and
mortgage transactions, but appraisals may also be necessary when
settling an estate, contesting high property taxes, or protecting
your rights in a condemnation case.
Generally, appraisers are selected by the lender and must meet
all lender requirements.
Prior to the appraisal, you should be prepared to answer the
following questions:
- What is the purpose of the
appraisal? Is it a
purchase or a refinance transaction?
- When is the required
completion date of the appraisal?
- Is the property listed for
sale and if so, for how much and with whom?
- Is there a mortgage?
If so, with whom, when was it placed and for how much?
Is it an FHA, VA etc.?
What is the interest rate and are there any other types
of financing?
- What personal property, such
as appliances, is included?
If
it is an income producing property, a breakdown of income and
expenses for the last one to two years and a copy of leases are
required as is a copy of the deed, survey, purchase agreement and
other pertinent papers.
Usually
a copy of the current real estate tax bill, statement of special
assessments must also be provided.
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