My New Blog

By Paul Johnson

When an appraisal is completed more times than not the results will be reported on a form. The actual appraisal is the data file and notes of the appraiser and the results and reconciliation are reported verbally or on some type of report.

Form reports are an efficient way to relay the information to the Reader/User of the report as it is layed out in a very organized format. If a User receives many appraisals of a similar type, say residential single family home for financing, then items and results are illustrated the same way in each report making their life that much easier. FNMA and FREDDIE MAC typically create the reports they prefer or require to see when an appraisal is to be used in a financial transaction that their agencies may back financially. Many software companies which provide report writing software to appraisers (ie Alamode, ACI) will have several of their own forms to use. Many times these forms are used when appraising for individual in the case when financing is not the end use. These forms are typically refered to as GP or GPAR forms. These acronyms represent "General Purpose" reports. It is common to see these in the use for Bankruptcy Appraisals, Divorce Appraisals, Pre Listing Appraisals, Estate Appraisals, and when individuals are just inquiring about the value of their home.

In most every case a professionally licensed appraiser is going to provide you with a complete and accurate report. Many times the more experienced the appraiser the better, but not in all cases. It is a good idea to interview the firm or appraiser a bit prior to scheduling. You can read reviews and get referrals from friends and real estate agents that service the market. Here a just a few things to think about when considering hiring an appraiser:

• Does the appraiser consider themselves a specialist in any particular type of property or area? If so and its not your type or area not great. However while there may be some 220 areas to specialize in no appraiser should claim to have expertise in everything. A good appraiser should have the ability and/or ability to get assistance and acquire the needed knowledge to complete your assignment. It is always best to find a local appraiser with experience in you type of assignment. Some specialize in Residential and other in Commercial.
• Ask the appraiser or firm some recommendations for real estate questions. Remodeling ideas and what is the best place to spend more on your home to help increase value. See how helpful and knowledgeable they are.
• How do they charge? If it is based on the value outcome that should be a red flag. A fee arrangement based on the final outcome is not a good idea as well as if the appraise conducts business this way they need to take a USPAP class quickly. Fees charged should be based on complexity having a flat rate or determining the number of hours needed to complete the assignment is acceptable.

Hope this is helpful. If you have any further questions give me a call.