Interviewing a Real Estate Property Appraiser

Real Estate Appraisals are not the same as an inspection. An inspector will point out the items that are a potential problem and could turn into a costly nightmare. An Appraisal is the process of valuing real property. An appraiser will provide you with an unbiased estimate of what a buyer might expect to pay or a seller receives. This will let you know if the asking price is higher or lower then the actual value of the property.

This is an important step in getting the financing needed to purchase a home and usually the confusing part of the mortgage process. Both the buyer and the seller are reliant on the opinion of a stranger.

Asking questions can help you determine if the appraiser is the right one for the job, so what do you ask?

Are you licensed or certified by state?
     A licensed appraiser is the lowest level of authorization by the state. They are not allowed to appraiser expensive or complex properties for lending purposes. A certified appraiser is the highest level. They are permitted to appraise any residential property in any price range regardless of size or complexity.
    An appraiser who has an SRA Designation means that their primary focus is residential properties and has more education and experience than a licensed or certified appraiser. There are fewer then 1% of appraisers that have obtained an SRA or MAI Designation.

FHA will not accept an appraisal from a "licensed" appraiser, 

ONLY a "certified" appraiser.

What is your background? Education?
      Certified and Licensed appraisers have passed the government's minimum standards. A Designated appraiser means that the person has become more than minimum.

Where is your office?
Do you have specific experience with the type of property and area?
     The odds of a competent knowledgeable appraiser that is up-to-date on the market area diminishes with distance from their office. You want to find an appraiser that works or even lives locally. They tend to be more familiar and know the neighborhood variables that affect the property value.
     An appraiser that works from home vs. professional office. Working from home indicates that he is a "one man show". A professional office tends to produce higher quality products and allows appraiser to share experiences, methods, and knowledge that may not be available to a one man show.

How long have you been in business?
     You will want an appraiser that has at least 5 years experience for simple properties. For a more complex, unusual, or waterfront home the appraiser should have at least 10 years in the field as well as a history of appraising similar properties in the area.

Are you a member of the local MLS?
     A good appraiser has access to the local MLS. If the appraiser you are interviewing doesn't that is a sign they are either from a distant area or incompetent. MLS are not nationwide, without local access they are no use.

What do you charge? What does that include?

     By asking about the fee, the borrower or REALTOR is confirming the appraiser is paid properly.

A properly trained appraiser, geographically competent, experienced, and capable appraiser is what you should end up with. Remember, hire a qualified appraiser, not the cheapest.