Simply stated, the appraisal process is an estimation that produces an opinion of value. A real estate appraisal is an unbiased estimate of the nature, quality, utility of interest or value, which real property should bring in a competitive and open market, as of a given date, where both buyer and seller are, well informed or well advised, with each acting in what he or she considers his or her own best interest. To be an informed party, most people turn to a licensed or certified professional appraiser to provide them with the most accurate estimate of the true market value of the subject property. Equally important, it is also understood real estate appraising is not an exact science, or a home inspection, but is an opinion of value. Even so, different people’s opinions can certainly vary; accordingly sound judgement is needed in balancing the variables to form an intelligent opinion of value.One of the three methods in valuing single-family dwellings that is generally used is the Sales Comparison Approach. This is easily the most common in obtaining the value of a single-family dwelling by assessing the subject, to similar properties located nearby. Generally speaking, the Sales Comparison Approach is the most significant indicator of the worth of a residential property. The other methods employed may include the Cost Approach to value and the Income Approach. Both have certain advantages and disadvantages based upon the characteristics, and market conditions, of the property under consideration.

Every report should demonstrate a supported value opinion and must clearly state the following: 

• Who engaged the appraiser and what is the purpose of the appraisal. 
  
• The intended use of the appraisal.
• The reason for the assignment. 
  
• The type of value contained, and a definition of the value reported. 
  
• The effective date of the appraisal. (At times this may be retrospective or in the future as new construction)
  
• Relevant property attributes, including: location, physical, legal, economic, or the real property interest in question, and non-real estate items included in the appraisal, such as personal property, permanent equipment installations and even intangible considerations. 
  
• All known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and the like.
  
• Division of interest, such as fractional interest, physical segment, and partial holding. What was entailed in the activity of completing the assignment. 
  

Simply stated, the appraisal process is an estimation that produces an opinion of value. A real estate appraisal is an unbiased estimate of the nature, quality, utility of interest or value, which real property should bring in a competitive and open market, as of a given date, where both buyer and seller are, well informed or well advised, with each acting in what he or she considers his or her own best interest. To be an informed party, most people turn to a licensed or certified professional appraiser to provide them with the most accurate estimate of the true market value of the subject property. Equally important, it is also understood real estate appraising is not an exact science, or a home inspection, but is an opinion of value. Even so, different people’s opinions can certainly vary; accordingly sound judgement is needed in balancing the variables to form an intelligent opinion of value. One of the three methods to value a single-family dwellings that is generally used is the Sales Comparison Approach. This is easily the most common in finding the value of a single-family dwelling by conducting a comparison of the subject, to similar properties located nearby. Generally speaking, the Sales Comparison Approach is the most significant indicator of worth of a residential property. The other methods employed may include the Cost Approach to value and the Income Approach. Both have certain advantages and disadvantages based upon the characteristics, and market conditions, of the property under consideration.

Tom Thurow is on the Federal Housing Administration Roster (FHA) of approved residential appraisers and qualified to complete appraisals for FHA insured loans. Equally important, he is trained and understands the rules, regulations, and procedures in FHA's guidance and policy documents. If you're in need of this type of appraisal, please contact him.An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on the loan. Available to many buyers, FHA loan programs are generally designed to help creditworthy low-income to moderate-income families who do not commonly meet requirements for conventional loans. Remember, the FHA is different from the VA appraiser panel in that the lender can choose the appraiser. FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are often lower than conventional loans.

From time-to-time homeowners may require an appraisal product for a variety of reasons, including a mortgage for a home purchase, refinance, home equity loan, Pre-listing valuation, or the removal of private mortgage insurance (PMI). When you request an appraisal, from Tom Thurow, you can be assured you will receive the best in professional service, courtesy, and quality.

For-Sale-By-Owner (FSBO) / Pre-Listing Service

Most would agree, it's difficult to be objective about your own home because of the emotional attachment you have to it. A local professional appraiser is objective and will tell you what you need to know, not just what you want to hear. Equally important, and in addition to helping you set a realistic list price, this will help to attract the most buyers. Plus, a professional appraisal is also beneficial as a negotiating tool once you have a potential buyer. The report provides documentation to show the buyer. It's an independent third party's opinion of your home's value, and not just you saying how much your home is worth. Potential buyers know you have an emotional attachment to your home and will be far more likely to give credibility to a professional appraiser's value opinion than yours.

PMI Removal Appraisals

PMI is the commonly known acronym for "Private Mortgage Insurance". A popular money saver for homeowners over the years is to have the PMI removed from their home mortgage loan, thus saving them money on their monthly housing payments. Once your mortgage loan balance is down below 80% of the value of your home, in most cases you can apply to the lender to have the PMI removed thus lowering your monthly mortgage payments. Tom Thurow has the experience to help you remove the unwanted PMI insurance.  

Do’s; Techniques to help the appraiser.

• Verify if a lock box in on the property.
• Unlock doors, turn on lights to help with photos.
• List personal property included with purchase. 
• Provide a building sketch with measurements if available.
• Note items not mentioned in the MLS.
• Identify discrepancies between MLS and public records.
• Point out unique or major amenities of the property.
• Discuss major improvements, kitchen and bath updating.
• Confirm all smoke and carbon monoxide alarms are in working order.
• Let the appraiser know if multiple offers were received.
• If you provide comps, make sure they are recent, located close-by, with similar amenities
• Offer available inspection reports.
• For FHA / VA appraisals confirm water heater, furnace, crawl space and attic are accessible.
• If applicable, provide condominium documents.

Dont's;

• Ask the appraiser if the property will ‘appraise at the sales price’ as it may violation the law.
• Appraiser cannot accept photos from you or the owner.
• Do not bring comps that are ‘not truly’ comparable.