Tips for Appraisals

Appraisals allow homeowners and buyers to establish what is fair market value of a property. In addition, an appraisal allows a lender to know how much they can safely lend.

This process, however, can be trying and even frustrating. Sometimes an appraisal can even put the kaibash on a deal. To reduce your stress during this time, consider these simple tips:

•Understand the role of appraisals. It is neither in your interest nor the interest of your lender for you to purchase a property that is over-priced for its value.

•Make sure the lender hires a qualified appraiser. The lowest priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.

•Accompany the appraiser during the inspection of the property if possible. The more active participant you are in the process, the more you will understand it, and be able to catch any errors.

•Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days.

•Examine the appraisal report and ask questions. Be sure to examine the report for errors.

•Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to contact them!

•Ask the lender to order a second appraisal by a qualified and designated appraiser.

•File legitimate complaints with appropriate state board or professional appraisal organizations.

For more information on appraisals, you may wish to visit The Appraisal Institute's website at www.appraisalinstitute.org.