According to a couple of appraisers we talked to recently, the increase in requests for appraisals seems to stem from several things: the two Federal rate cuts in March and the updated rules for documenting properties. Let’s see how these developments can affect your appraisal report writing and why outsourcing the research and report writing process helps you complete property evaluation assignments faster.
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According to a couple of appraisers we talked to recently, the increase in requests for appraisals seems to stem from several things: the two Federal rate cuts in March and the updated rules for documenting properties. Let’s see how these developments can affect your appraisal report writing and why outsourcing the research and report writing process helps you complete property evaluation assignments faster.
The typical error rate for the appraisal report writing process isn’t generally known because the quality and speed of producing each report vary based on the appraiser’s level of experience and the tools and resources available to them. However, in a data-driven company like Fair Trade Outsourcing, you’re assured that our agents can produce at least 10 reports in a week with 9,000 data points, and still maintain an error rate of 0.07% for the whole week (and not per report).
If you really think about it, the error rate for appraisal report writing at Fair Trade Outsourcing might even be lower than the estimated number of plane crashes that could happen in a year.
There are two types of appraisal reports addressed by USPAP as of 2014, namely Appraisal Report and Restricted Appraisal Report. These are the only reports endorsed to meet USPAP’s minimum requirements and reporting standards.
In other words, each written report of real estate appraisal must be prepared and submitted as one of these two types of reports. While both reports are completed appraisals with certified values, they vary particularly on the content and level of reporting detail, as they are dependent on the intended use and the intended user.
Comparable sales, also known as a “comparable” or collectively called “comps,” are the prices paid for similar houses that are comparable in location, condition, features, and size. Comps are essential in real estate appraisers because they are used to determine a home’s value. Using comps, buyers can decide on the price offer while sellers figure out how to price their home competitively in the market. When driving their comps, real estate agents and appraisers can pull up details they need on their comparables from a Multiple Listing Service (MLS) database.
Accurately pricing a property is crucial factor in appraisals. What if you priced the property too low or too high? What if you overlooked some areas that affect the property’s worth? Precise information for comps is indeed the one thing to keep in mind, so here are the types of appraisal information to find that are important to the appraiser.
In a nutshell, inspections do not just deliver a general impression of the overall physical condition but also reveals those areas that needed an in-depth investigation, like foundations and structural framing, roof conditions, and home ventilation. Inspections are vital because what the inspector or appraiser may conclude about the property will have an influence on the property’s selling price. Inspections typically take about 3 to 4 hours, so you must know beforehand what important appraisal information is needed from an on-site inspection.
