Things to Know Before Your Real Estate Appraisal

Embarking on the real estate appraisal process can be daunting, particularly for first-time homeowners.

That's why we at Measured Home Services a Tulsa Real Estate Appraisal service have compiled a guide to help you understand the factors influencing your home's value, the differences between licensed and certified appraisers, and the differences between home inspections and appraisals.

Understanding Real Estate Appraisal Costs

The cost of a real estate appraisal depends on various factors, including the property's size, location, and the complexity of the appraisal research required.

Appraisals in rural areas, for instance, may pose an added cost when compared to those in urban areas, owing to travel costs, scarcity of appraisers and often times less data available for comparison. Moreover, larger properties may require additional time to measure and assess than smaller ones, impacting the overall cost.

At Measured Home Services, we appreciate that each property and appraisal requires different considerations and research.

Consequently, we do not offer a "one size fits all" fee.

However, understanding the influencing factors can help you budget appropriately for an appraisal and ensure that you get value for your money.

Licensed Versus Certified Appraisers

The qualifications and scope of practice for appraisers can vary depending on their certification.

As a property appraisal expert, Measured Home Services ensures that the appraiser assigned to you is best suited for your particular needs.

The primary differences between a licensed and a certified appraiser include education and scope of work permitted. For example, FHA appraisals require certified appraisers.

However, irrespective of whether you need a licensed or certified appraiser, rest assured that we can provide the right expert for your needs.

It's our priority to answer any questions you may have and ensure the process is as smooth as possible.

The Difference Between an Appraisal and a Home Inspection

It's crucial to understand the differences between an appraisal and a home inspection when planning to buy or sell a home. In a nutshell, an appraisal provides a professional opinion of the property's value, while a home inspection assesses the functional condition of the property’s components.

During a home inspection, the inspector examines the functionality of all aspects of the home. During a home appraisal, the appraiser simply observes the overall condition of the home using an extraordinary assumption with regard to the function of the components.

Home inspectors ensure that every area of the home operates to industry standards. On the other hand, an appraiser looks at the overall quality and observable condition of the home during an appraisal.

While both appraisals and home inspections are crucial parts of the home buying or selling process, they serve different purposes and should not be substituted for each other.

Why an Appraisal Might Come In Lower Than the Asking Price

An appraisal coming in lower than the asking price can be quite concerning for the parties involved.

The most common reason a low appraisal occurs is from comparing other homes that do not reflect your home in terms of size, quality, condition or location during the initial listing process.

If the appraisal comes in lower than the asking price, it can help to ask the appraiser to explain their reasoning, provide additional information about the property and potentially negotiate with the seller to lower the asking price. Since appraisers adhere to the Appraiser Independence Requirements requiring them to remain objective and impartial, substantial communication regarding an opinion of value may be limited, specifically when the appraisal is for mortgage loan purposes.

Wrapping Up

While the real estate appraisal process may seem overwhelming, it doesn't have to be.

Being well-informed and partnering with a trusted property valuation company, like Measured Home Services, can make the process smoother and more manageable.

Remember, whether you need an appraisal for a sale, a mortgage loan, or any other reason, our team of property appraisers is here to guide you through every step.

We'll ensure you receive a comprehensive, detailed, and accurate appraisal report that meets your needs.