Episode 056 - Do I Need An Appraiser?
Episode 056 - Do I Need An Appraiser?
Why do we subject ourselves to the pain and agony of hiring an appraiser? Short answer – Worth it! Long answer – They really are worth it when you need them!
You don’t always need an appraiser for certain situations, but it sure helps to have an unbiased, credible, valuation professional complete tasks when they are needed.
There are many reasons to hire an appraiser and we talk about some of that in this episode. Hold your judgement and hear me out. Appraisers do add value to your valuation needs.
SHOW NOTES
- 01:28 – Most agents only think of the appraisal need with the lender and the borrower’s loan.
- 02:05 – Different definitions of value for different uses.
- 02:22 – Different reasons for an appraisal: FSBO pricing; Cash purchase; Listings; Pricing dispute between the listing agent and seller.
- 03:50 – Legal reasons for appraisals: Divorce; Probate.
- 04:22 – Improvements analysis for remodeling or adding on to a home.
- 04:40 – Tax Reasons: Income, property, and estate taxes.
- 05:15 – Analogy: You wouldn’t hire a general medical practitioner for brain surgery. Agents do not specialize in valuation. Appraisers are the specialist.
- 06:22 – Appraisers complete a lot of analyses. Trends, comparables, adjustments. Appraisers add credibility to the value.
- 07:20 – Appraisers are unbiased. Divorce example. Listings. Appraiser’s “don’t care” about your situation.
- 08:52 – Appraisals are not always needed. A CMA works for general idea.
- 09:31 – An appraisal was just completed and you might be able to use it for another purpose such as tax appeal.
- 10:02 – BPO is a middle grade valuation. CMA is generally at the bottom of detail. Appraisal is at the top, and BPO is in the middle.
- 10:45 – A good appraiser will turn away work if the client doesn’t really need it.
- 11:10 – An appraiser brings A LOT to the table.
SHOW LINKS
- Definitions of Value – http://www.duncanbrown.com/definitions-value
- CMA – https://www.realtor.com/advice/sell/understanding-the-comparative-market-analysis/
- BPO – https://en.wikipedia.org/wiki/Broker%27s_price_opinion#:~:text=A%20broker's%20price%20opinion%20is,estate%20agent%2C%20broker%20or%20appraiser.&text=The%20final%20BPO%20is%20used,of%20a%20real%20estate%20property.
BETWEEN THE LINES LINKS
Web
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?