With the mushrooming growth of real estate industry, the need for professional and experienced real estate appraisers is gaining momentum for every deals and transactions. But, the fact still remains that everyone claiming to be a real estate appraiser may not have that proficiency and expertise to appraise a property. Also, there is another fact that most of the real estate appraisers are hyper-defensive about their quality of work. So, how to deal with an appraiser for property appraisal? That’s a big question! Here are a few things that must be understood, in order to understand the roles and operations of any appraiser.
Physical inspection is only a part of the process:
When a real estate appraiser makes physical verification, it doesn’t mean that the appraisal process is over. You must understand that inspection of physical property is only a small part of the entire appraisal process. There are many documentations and analysis is involved in the appraisal process in order to estimate the value of the real estate property. Public ownership, zone records, comparable sales costs, rental value, and lifestyle information are some of the important aspects for any real estate valuation.
Misinterpretation of facts must be avoided:
A real estate appraiser will always try to ask different questions in connection with the property under valuation. They may ask you for records of the property and some other valid documents. You must understand that all information asked by an appraiser is for cross-verification of records. They will definitely cross-verify the information shared by you from other reliable sources and government records. So any misinterpretation of facts, may lead to under-valuation of the property for wrong or improperly interpreted information. You must be frank and give answers that are valid with necessary documentation.
A professional appraiser must abide by a strict code of conduct:
A professional real estate appraiser has to abide by the code of rules as specified by the Uniform Standards of Professional Appraisal Practice. This may vary from country to country as per the set standards. If an appraiser is not willing to do something that you are asking for, it might be due to the reason that he/ she is adhering to the uniform code of conduct for professional appraisal. Failing the professional uniform code may cost the appraisers their license and levy penalties from authorities.
Appraisals are deemed to be the responsibility of the client:
If you are seeking finance over your real estate property, the money lender or the bank is the client and they order appraisal for your property. Real estate appraisal is a confidential information and is a property of the client, unless they are willing to share that with the beneficiary. Hence, you can’t ask for the appraisal report from your appraiser without the consent of the bank or the money lender. Similarly, if you are ordering your property appraisal for tax purpose, rest assured that the real estate appraiser won’t reveal the appraisal report to tax authorities.
An appraisal is a complicated task and is carried out precisely by any real estate appraiser. Your role is to support your appraiser and clarify his queries and questions with sufficient documentary evidence. With clarity of information, it’s always possible to get a good valuation of the property and maintain a clear stance before your bank or any other concerned organization!