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Different Types Of Appraisal Accounts

Here's a summary of some of the services a professional real estate appraiser can provide depending upon their qualifications. See section Purpose Of A Real Estate Appraisal for more details:

  • Residential and Commercial valuation estimates

  • Estate planning and estate settlements

  • Tax assessment review and advice

  • Advice in eminent domain and condemnation property transactions

  • Dispute resolution - including divorce, estate settlements, property partition suits, foreclosures, and zoning issues

  • Feasibility studies

  • Expert witness testimony

  • Market rent and trend studies

  • Cost/benefit or investment analysis, for example, what will be the financial return of remodeling a house, condo, or commercial property

  • Land utilization studies

  • Supply and demand studies

 

  • 1. Loan Origination Appraisals - This type of appraisal account will be busier during good economic conditions and increasing sales of homes. During a good economy there will be higher employment percentages and more opportunity to make money. This leads to many people buying a nicer home or moving to a nicer area, which in turn leads to many new mortgage loan applications at the banks that will require appraisals.

  • 2. Refinance Loan Appraisals - This type of appraisal account will generally be busier during times of lower interest rates for mortgage loans. During lower interest rate times many homeowners will refinance their existing mortgage. They can take advantage of the lower interest rates to reduce their current monthly mortgage payments. This leads to many refinance mortgage loan applications at the banks that will require appraisals.

  • 3. Foreclosure Appraisals - This type of appraisal account will generally be busier during bad economic conditions and recessions. During a bad economy there will be higher unemployment which leads to more people falling behind with paying their bills and their mortgage loan payments. This in turn leads to bank foreclosure proceedings. New appraisals are needed after the properties are taken back by the lenders. It's a tragedy when someone loses their home due to foreclosure. However, as I've said earlier, you're not taking advantage of anyone or being unethical by appraising properties that are the result of a distressed sale or a foreclosure. All of these properties have to be appraised. Therefore, someone is going to be hired to do the job. Everyone will be much better off if the lender hires an "A to Z Appraiser" who does top quality work. Why make the situation worse by hiring another appraiser who is only concerned with the fee he earns and not the quality of his appraisal.

 

Real Estate Expert Investing Advice FSBO Homeowners House Buyers Sellers Realtors Agents Brokers I've done a lot of foreclosure appraisals for lenders. After the bank takes the property back, they have it reappraised to decide what price to list it at for a quick sale. They do this to sell the property quickly and get as much of their money back as possible. By doing foreclosure appraisals, I've seen some very interesting properties and situations. I'm referring to aspects other than the sad fact that someone has lost their home due to a distressed situation. You might want to consider getting an account to do some foreclosure appraisals because it's great experience and you may find it to be very interesting work.

Real Estate Expert Investing Advice FSBO Homeowners House Buyers Sellers Realtors Agents Brokers I've seen everything from very low valued Condos and Co-Ops, multi‑million dollar single family houses, a State Supreme Court Judge's house, and even funeral homes that have been foreclosed on that I had to appraise. Some houses are in great condition after a foreclosure. I have seen cases of people that have put a lot of money into a house and then some bad luck hit them. They ended up losing their jobs or another unfortunate circumstance happened to them. Since they couldn't make the loan payments, the bank took the house back. I've also seen some houses that were totally destroyed after a foreclosure. I've seen cases of people who would destroy a house out of anger and revenge due to the bank foreclosing on them. I've also seen some dishonest builders and investors scam the banks out of millions of dollars. What they did was borrow the money and then just walk away from the house and kept the funds from the loan without even making one loan payment to the bank or mortgage lender.

  • 4. Tax Appraisals - This type of appraisal account will generally be busier during times when the property taxes are raised. Many homeowners will dispute an increase in their property taxes, or the current amount of their taxes. They may feel that their property has been "over assessed" and that their property taxes should be reduced. To dispute your property taxes, you need to have an appraisal done to estimate the market value of your property. Also, when someone dies and leaves real estate to their heirs, an estate tax has to be paid and appraisals are needed for that.

  • 5. Commercial Appraisals - This type of appraisal account will generally be busier in a good economy when businesses are doing well. A commercial real estate appraisal refers to the appraisal of a building and/or site that deals with a non-residential property. This would generally be any building larger than a legal four family dwelling or a site that is commercially zoned by town hall. Commercial appraising is very involved and takes a lot more training, experience and classes than just doing residential appraisals. If you ever have the opportunity to work with a commercial appraiser you'll see what I mean. The fees charged for commercial appraisals are much higher than those charged for residential appraisals. However, along with the higher fees there is a much higher liability that's assumed by the appraiser if a mistake is made in the report. As with anything else in life: The greater the rewards, the higher the risk and sacrifice to obtain those rewards.

  • 6. Relocation Appraisals - This type of appraisal account will generally be busier during times when theeconomy is doing well. During good economic times, companies are hiring and expanding their businesses. As a result, they have to transfer new and existing employees to different locations. Relocation firms always need real estate appraisals during the process of employees being transferred to a new location by their employers.

  • 7. Insurance Appraisals - This type of appraisal account will generally be busier during a strong economy and real estate market. Insurance companies sometimes hire appraisers to do appraisal reports on properties before they give an insurance policy. This will enable the insurance company to know the correct value to insure the property for in case of fire or damage.

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