How are appraisers licensed and certified?
Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. However, licensing and certification in Rhode Island requires many hours of coursework, tests and practical experience. Once an appraiser is licensed, he or she is required to take continuing education courses in order to keep the license current.
Where does an appraiser get the information used to estimate value?
Gathering data is one of the primary roles of an appraiser. First, the appraiser does an “on site” home inspection and collects information pertinent to the home itself. Factors include location, condition, and size of dwelling, amenities and other specific data. General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.
What is Market Value?
Market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeable 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: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and (5)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.
What exactly is PMI and how can I get rid of it??
Private mortgage insurance, or PMI, is an additional monthly fee required by most lenders when your down payment on a home is less than 20 percent. Here are some ways to get rid of PMI on your existing home loan. (1) Read through the loan documents. A loan with PMI (also known as mortgage insurance, or MI) should include a document describing the mortgage insurance and providing the rules for canceling it. (2) Maintain a good repayment history on your loan. (3) Request the cancellation of PMI in writing when your equity has increased to greater than 20 percent of the home's current value (in which case you'll need an appraisal to verify), or when the loan has been paid down to 80 percent of the original loan amount. If this is the case, you can request a cancellation of PMI without an appraisal?.
Who actually owns the Appraisal Report?
In most real estate transactions, the appraisal is ordered by the lender. While the home 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 home buyer is entitled to a copy of the report - it's usually included with all of the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender. The exception to this rule is when a home owner engages an appraiser directly. In these cases, the appraiser may stipulate how the appraisal can be used; 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.
How long does an appraisal inspection take?
An appraisal generally takes approximately 30-45 minutes depending on the size and condition of the property.
How long does it take to receive my appraisal?
We deliver our appraisals within 5-7 business days from the date of inspection.