3 Alternatives to On-Site Inspections for Appraisal Reports

Published by Claire Ponsaran on May 8, 2020

The process of writing up an appraisal report typically involves exterior and interior inspections, which allow the appraiser to determine the characteristics of the subject property. Usually, the appraiser visits the subject property as well as comparable properties with similar characteristics.

However, this practice of doing on-site inspections and comparable research isn’t restricted to the appraiser. The USPAP guidelines provide some allowance for a real estate appraisal assistant to perform non-significant work or even a third-party inspector to provide significant assistance to the appraiser.

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3 Alternatives to On-Site Inspections for Appraisal Reports

3 Alternatives to On-Site Inspections for Appraisal Reports

The process of writing up an appraisal report typically involves exterior and interior inspections, which allow the appraiser to determine the characteristics of the subject property. Usually, the appraiser visits the subject property as well as comparable properties with similar characteristics.

However, this practice of doing on-site inspections and comparable research isn’t restricted to the appraiser. The USPAP guidelines provide some allowance for a real estate appraisal assistant to perform non-significant work or even a third-party inspector to provide significant assistance to the appraiser.

overcoming challenges of customer support for mortgage lenders

Why Hire Appraisal Report Writers Now Rather Than Later

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.

Three Reasons for Our Ridiculously Low Error Rates in Appraisal Report Writing

Our Appraisal Report Writing Have Ridiculously Low Error Rates! Why is that?

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.

The Types and Uses of Appraisal Reports

What are the Two Types of Appraisal Report?

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.

3 Types of Appraisal Information to Look For When Driving Your Comps

3 Types of Appraisal Information to Look For When Driving Your Comps

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.

3 Types of Real Estate Appraisal Information to Produce During On Site Inspection

Essential Real Estate Appraisal Data From Site Inspections

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.

10 Types of Appraisal Information to Find When Doing Property Research

10 Real Estate Appraisal Data Points to Find for Property Research

Property research is crucial in making real estate verdicts. It provides information relevant to the buying-selling negotiations and decision-making. But before you start going around in circles, going back and forth with little to no information, you need to know where to begin. So, here’s a starting point: The ten types of appraisal information to find when doing property research.

Your client may require more information about the property, depending on the purpose of the appraisal, but these 10 types of information are the ones commonly sought after.