Paul's Appraisal Blog

    I recently found an article in the San Diego Union Tribune that whether you should appeal your property taxes. As it said, if you bought in the last couple of years, you certainly should. The link to the story is found at: Property Tax Story Link

    One of the ways you can appeal is by providing a recent appraisal, which is usually much stronger evidence of home value than recent sales chosen by the average person. Many people make the mistake of choosing sales that are too big or too small or too old. There are many factors to take into consideration, so an appraisal is a better bet.

    I can help you by telling you ahead of time if your home has lost enough value to make it worth your while. I have access to public records and can see what the assessed value is and give you a rough estimate of your current value. I won't try to sell you something that won't do you any good.

    So, if you think you're paying too much, give me a call and we can talk about it. I will let you know if it's worth getting an appraisal and appealing your property tax. Like I said, I won't try to sell you something you don't need and I can give you a good price on an appraisal if you do need one.

    In this market of declining values, REO's, Short-Sales and Home Auctions, you may find yourself in a position where you've made an offer on a property, but then wonder if you really got a good deal?  Unfortunately, your real estate agent won't always be honest with you about this- it's in his or her best interest to "make the deal work", so that they can get their commission. And actually, the more you pay, the more they make, so it behooves them to get you to pay the highest price possible.

    This where your friendly local appraiser comes in. You, as the borrower and purchaser, can ask for any appraiser you want. The lender may him and haw, but if you say you want such and such to appraiser you house, they won't argue. (As long as the appraiser is approved by the lender making the loan)  By getting your own appraiser, you can tell him or her that you are concerned about the value and want a totally honest opinion about the value, whether it comes in at the purchase price or not.

    The fact of the matter is that the value of a home is usually a range of values, and many times an appraiser will "bring it in" at the purchase price, provided the purchase price is within the range of values arrived at in the analysis.  If you choose your own appraiser, you can express your concern about the value so the he or she does a more careful job of arriving at a single value conclusion.

    So, if you find yourself in this situation, give me a call. I will take the time to do a thorough analysis and let you know if you are over-paying for you house.

    Many people seem to be unaware that there are several report options for a single family residence, or SFR. The range from the desk review without inspection to the full URAR form 1004. Here are the options:

    A BPO is a Broker Price Opinion and entails looking at recent comparable sales and active listings. It doesn't require a physical inspection and is usually done by gleaning data from the local Multiple Listing Service, or MLS. These can be completed by licensed or certified appraisers as well as real estate agents or brokers. These are the most inexpensive reports, but can be pretty inaccurate if the subject or comparable sales have a lot of differences. These generally not usable for loan purposes. The fee is around $50 to $75 or so.

    A Drive-By appraisal (Form 2055) is a step above a BPO and requires a physical inspection of the exterior of the subject and the comparable sales from the street.  There is no measurement of the improvements or verification of the interior condition. These can be suitable for certain types of loans and for tax purposes. The fee is around $175 to $250 or so.

    The full residential appraisal, or URAR (Form 1004) is designed for loans and is the most thorough of the three. It includes a full interior and exterior inspection of the subject, measuring the the subject and verifying the gross living area (GLA), and inspecting the comparable sales and neighborhood from the street. A comparable form, the GPAR (General Purpose Appraisal Report) is designed for non-lending purposes, but is similar in scope of work. The normal fee is around $300-$400 for tract-homes, more for larger, complex, or custom homes.

    So, the next time you ask for an appraisal, you might want to consider what you really need. You might be able to save a few dollars. Give me a call if you want more information. If you can get by with a cheaper appraisal, I'll let you know.

    If you order appraisals, have you ever thought about the impression your appraiser makes on your clients? If you think about it, your appraiser is part of your team and to some extent is a reflection of your company.

    When I first started appraising, I remember working with guys that would show up to inspections in shorts and tee shirts, army camo, or the more happening "hip-hop" attire consisting of baggy pants, oversized sweat shirts and gold chains around their neck. Back in the day when loans were fast and furious, this probably didn't matter much. However, in these days of economic insecurity, I think people feel a lot more comfortable when a professional knocks on their door.

    As a representative of your team, my colleges and I always perform inspections in a professional manner, with appropriate dress and attitude. We strive to instill confidence in the person who's house we are inspecting and are always polite and cordial. Unlike some appraisers who quickly and superficially look over a property, we take the time to perform a thorough inspection and answer any questions. If any questions arise later, they are always answered with courtesy and professionalism.

    Our mantra: "Customer Service is Job One!!"

    So, the next time you're thinking about hiring an appraiser, think about the impression they will make on your client. Do you want to risk losing a deal because your appraiser made a bad impression or insulted your client? Feel free to give me a call if you need a professional appraisal in a timely manner. I can help you and your clients with all of your valuation needs.