Port St Lucie Appraisal Services
State Certified Residential Real Estate Appraisers
(772) 678-2980

Purpose of a Real Estate Appraisal

What is the purpose of hiring an appraiser?

If you need a real estate appraisal it is highly recommended that you hire an experienced state certified real estate appraiser who has knowledge of the area and can quickly provide you with an accurate appraisal. Listed below is a description of various purposes of a property appraisal.

Estate

An estate usually requires a real estate appraisal to establish the "market value" for the real estate involved as of the date of death. Due to this an estate appraisal is a retroactive appraisal with an effective date of the date of death. The attorney handling the estate typically hires the appraiser for estate purposes.

Divorce (Equitable Distribution)

A divorce appraisal helps determine market value of the property so the parties getting divorced can split assets. An appraiser who completes a divorce appraisal should be experienced and able to support a defensible opinion of value and be willing to go to court, if necessary. Typically a divorce appraisal should be completed as of the date of separation. The appraiser is typically hired by either an attorney or the homeowners.

Selling Real Estate

When you decide to sell your home an experienced real estate appraiser can help you greatly. A real estate appraiser can provide you with an unbiased opinion of value to help you price your home correctly and get it sold. Don't rely on a real estate agent to help you determine the value, they are not trained to value properties and they are biased as they want to get your listing, therefore many agents will embellish the value to try to obtain your listing.

Buying Real Estate

When buying real estate it is highly recommended that you hire an experienced real estate appraiser either prior to making an offer or have the offer contingent on an appraisal. Do not rely on a real estate agent to help you determine the value of the property as most agents work for the seller and are obligated to attain the highest price. Also, real estate agents are not trained to value properties. A real estate appraiser could possibly save you thousands of dollars on the purchase of a home.

Investment

Whether you are purchasing a single family home, condo or multi family property for investment purposes a real estate appraisal can help you determine the value of the property before making an offer and also show you the typical rent in the area for the type of property you are purchasing. When you are purchasing a property for investment purposes an appraisal is a must. Remember you make your money on an investment at the time of purchase, so purchase at the right price and instantly receive a return on your investment.

Bankruptcy

Bankruptcy requires the debtor to provide an expense report indicating their net worth. To help a homeowner determine their net worth an appraisal will be needed to determine the value of their property. It is the homeowner's responsibility to hire a state certified appraiser to obtain a real estate appraisal.

Private Mortgage Insurance (PMI) Removal

Once an owner has 20% equity in their home by any means, improvements, paying down the balance of the loan or appreciation, the borrower can have the lender cancel the private mortgage insurance policy. Typically a borrower can prove the amount of equity they have with a real estate appraisal completed by a state certified real estate appraiser. Contact your lender to see how the process works as the lender may be required to hire an appraiser through a middleman (Appraisal Management Company).

Property Tax Appeals

To appeal their property taxes a property owner will need to prove the value of their property is less than the property appraiser's office indicates. If a property owner believes their property was over assessed they should hire an experienced state certified real estate appraiser to complete a real estate appraisal to help them determine the value of their property before they appeal their property taxes. The appraisal will include needed information that can be used to combat the assessed value. For further information about appealing your property taxes view the Port St Lucie Property Appraisers office website: St Lucie Property Appraiser

Loan Modification

The first thing a lender will want to know before modifying the terms of your loan is to know the current value of your property. Most lenders will do their own online appraisal (desktop appraisal) to estimate the value. If you (the homeowner) believe their value is inaccurate and this causes the denial of the loan modification, you are advised to hire a state certified appraiser to determine the value of your property. Before hiring an appraiser you should contact the lender to determine the process you must follow when you are disputing their value estimate. Remember many times the people doing these desktop appraisals are located hundreds, if not thousands of miles away and may not be qualified to appraise a property in your area.

Financing

When you want to obtain a home loan to purchase a property, refinance an existing loan or get an equity line of credit the lender will require that you have adequate collateral to secure the loan. A state certified appraiser will typically be hired to evaluate the property to ensure the property is worth enough to cover the loan amount to enable the lender to sell the property in case the borrower defaults on the loan. The lender will typically hire the appraiser for financing purposes through a middleman (Appraisal Management Company).

REO

If an REO home has been on the market for sale for over 90 days an updated appraisal from an independent real estate appraiser is required to determine the current market value of the property. The updated appraisal is required to show current market conditions that may have changed since the original appraisal was completed.

Foreclosure

When a property is in foreclosure a lender typically requires a foreclosure appraisal to estimate the current value of the property. A foreclosure appraisal can also be helpful to a homeowner who is in negotiations with the lender during the foreclosure process. Most foreclosure appraisals provide numerous values including, fair market value, As-Is value and As-Repaired value.

Short Sale

Short sale appraisals are common when property values have been declining as they were a few years ago. Many times the amount of the mortgage on a property is more than the current market value of the home. An appraisal during a short sale situation can help you with negotiations with the bank. A short sale is when the lender allows the homeowner to sell the property below the current mortgage balance. If the property is worth $200,000 and the current mortgage amount is $225,000 the lender may allow the homeowner to sell the home for $200,000 and the lender will write off the loss of $25,000. For the homeowner to get approval to sell the property for $200,000, the homeowner will likely have to get a short sale appraisal to prove to the lender that the home is worth only $200,000. Contact your lender to see how the process works prior to hiring an appraiser.

Relocation

A relocation appraisal is the most probable selling price of a property within the near future based on a typical marketing time. A relocation appraisal is not appraising for market value, like your typical appraisal for financing purposes, it is to estimate the anticipated sales price. Another difference between a relocation appraisal and a typical appraisal is the client may require a specific marketing time period which could have an impact on the appraised value. If the typical marketing time in your area is 6 months, but the client requires no more than a 3 month marketing time, some discounting may apply.

To order an appraisal call (772) 678-2980.