What is an appraisal? The procedure of writing an appraisal consists of an investigation which forms an opinion of value. The appraiser must use a number of "approaches," typically three, to arrive at the estimation of worth. One of the processes in use is the Cost Approach, which is what it would cost to restore the improvements to the house, minus age and physical deterioration, plus the land value. Easily the most common approach in figuring the value of a home is the Sales Comparison Approach which involves concluding a comparison to comparable houses nearby. The Sales Comparison Approach is normally the most definitive and best indicator of cost for a home. The Income Approach is primarily used for finding the worth of income-producing properties based on what an investor would pay based on the amount of capital a property produce. What does an appraiser do? An appraiser offers a professional, unbiased opinion of market value, to be used in making real estate decisions. Appraisers display their formal investigation in appraisal reports. There are a lot of reasons to purchase an appraisal from Peerless Appraisals with the usual reason being real estate and mortgage transactions. A few other reasons for purchasing a report include: To get a loan. To lower your property taxes. To show the replacement cost of Primary Mortgage Insurance. To contest inflated property taxes. If you need to take care of an estate. To give you a negotiating tool when purchasing real estate. To determine an honest property value when selling real estate. To defend your rights in a condemnation case. Government agencies such as the IRS need an appraisal on every house. If you ever find yourself in a lawsuit. What is the difference between an appraisal and a home inspection? Home inspectors do not estimate an opinion of value and are not appraisers. An inspection is a third-party evaluation of the available structure and electrical and mechanical systems of a home, from the roof to the bottom. Usually, a home inspection report will discuss the amenities and the requirements of the house: air conditioning (weather permitting), electrical services, the condition of the heating system, the plumbing; then the structural capacity of the home such as the attic, visible insulation, walls, floors, ceilings, windows, then the foundation, basement and visible structures. What is the difference between an Appraisal and a Comparative Market Analysis (CMA)? Simply, they share nothing in common. The CMA relies on local market trends. The appraisal depends on similar verifiable comparable sales. Area and building costs are also a priority in an appraisal. The CMA will provide a non-specific figure. Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value. But the biggest difference is the person creating the report. A CMA is created by a real estate agent who may or may not have a true grasp of the market or valuation concepts. The appraisal is created by a licensed, certified professional who has made a career out of valuing properties. Further, the appraiser is an independent voice, with no vested interest in the value of a home, unlike the real estate agent, whose income is tied to the value of the home. What does the appraisal report contain? Each report must reflect a credible estimate of value and must identify the following: The client and other intended users. The intended use of the report. The purpose of the assignment. The type of value reported and the definition of the value reported. The effective date of the appraiser's opinions and conclusions. Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items. All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature. Division of interest, such as fractional interest, physical segment and partial holding. The scope of work used to complete the assignment. After completing the report, what assurance is there that the value indicated is valid? In communicating an appraisal report, each appraiser must ensure the following: That the information analysis utilized in the appraisal was appropriate. That significant errors of omission or commission were not committed individually or collectively. That appraisal services were not rendered in a careless or negligent manner. That a credible, supportable appraisal report was communicated. Most states require that real estate appraisers are state licensed or certified. The state licensed or certified appraiser is trained to render an unbiased opinion based upon extensive education and experience requirements. To become licensed or certified, appraisers must fulfill rigorous education and experience requirements. In addition, appraisers must abide by a strict industry code of ethics and comply with national standards of practice for real estate appraisal. The rules for developing an appraisal and reporting its results are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP). How are appraisers certified? Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. However, licensing and certification is most often associated with many hours of coursework, tests and practical experience. Once an appraiser is licensed, he or she is required to take continuing education courses in order to keep the license current. Who do appraisers work for? Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions. Where does an appraiser get the information used to estimate value? Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection. General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, such as Metro Appraisals' InterFlood product. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market. Why do I need a professional appraisal? Anytime the value of your home or other real property is being used to make a significant financial decision, an appraisal helps. If you're selling your home, an appraisal helps you set the most appropriate value. If you're buying, it makes sure you don't overpay. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. A home is often the single, largest financial asset anybody owns. Knowing its true value means you can the right financial decisions. What exactly is PMI and how can I get rid of it? PMI stands for Private Mortgage Insurance. It insures a lender against loss on homes purchased with a down-payment of less than 20%. Once equity in the home reaches 20% you can eliminate the PMI and start saving immediately. How do I get ready for the appraiser? The first step in most appraisals is the home inspection. During this process, the appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home's general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure the appraiser has easy access to the exterior of the house. Trim any bushes and move any items that would make it difficult to measure the structure. On the inside, make sure that the appraiser can easily access items like furnaces and water heaters. The following Items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time: A survey of the house and property. A deed or title report showing the legal description. A recent tax bill. A list of personal property to be sold with the house if applicable. A copy of the original plans. What is "Market Value?" Market value or fair market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Who Actually Owns the Appraisal Report? In most real estate transactions, the appraisal is ordered by the lender. While the home buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The home buyer is entitled to a copy of the report - it's usually included with all of the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender. The exception to this rule is when a home owner engages an appraiser directly. In these cases, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stipulated otherwise, the home owner can use the appraisal for any purpose. Which home renovations add the most to the price? Peerless Appraisals, LLC is always willing to address any questions you might have about appraisals in San Antonio and Bexar County. Contact us today to talk about how we can help you with your specific valuation problems.

Most localities determine your property tax burden based on an ad valorem assessment of the property's value. If you you get an unwanted surprise in the mail stating your taxes are going up, you may have good reason to differ with their assessment. Sometimes, matters like this can be solved with a phone call. However, if after discussing your assessment with your local taxing authority you still feel your property was overvalued, an independent, third-party appraiser is often your best bet in proving your case. There are as many different procedures for appealing assessments as there are property taxing districts, so it's important to enlist the help of a professional appraisal firm that's experienced and trained in the ins and outs of your particular jurisdiction. Please note: It makes sense to do your own research before determining whether to go forward with a property assessment appeal, especially before you make the decision to hire a professional appraiser. However, according to the Uniform Standards of Professional Appraisal Practice (USPAP), we are not allowed to take "shortcuts" -- i.e., your research -- and use it on its face as part of our independent evaluation. When you hire us for an assessment appeal, you're commissioning an independent, third-party professional appraisal report. As such we do our own evaluation, beginning to end. If you're right that your property has been overvalued, an independent report such as ours will be even more persuasive than any other evidence you can marshal on your own. But it depends on our ability to do the work independently. Sometimes, you will have a hearing on your assessment appeal and will need for the appraiser you've hired to testify on your behalf. Be assured that at Peerless Appraisals, we are able to professionally and persuasively testify at appeal hearings. Browse our website to learn more about our qualifications, expertise and services offered.

Appraising is a profession, and appraisers are professionals. The rigors of becoming a licensed appraiser have increased more than ever before. So it goes without question these days that real estate appraisal can certainly be considered a profession rather than a trade. As with any profession we have a strict ethical code. As appraisers our primary responsibility is to their client. Typically, in residential practice, the lender places the order to the appraiser, becoming the appraiser's client. Appraisers are required to only disclose information to their clients, and as a homeowner, if you would like to review an appraisal report, you generally have to get it through your lender. Other responsibilities also include, accurate figures appropriate to the scope of the assignment, attaining and maintaining an appropriate level of competency and education, and the appraiser must conduct him or herself as a professional. Maintaining high ethics is is what we do everyday at Peerless Appraisals. Appraisers may often have fiduciary obligations to third parties, including homeowners, buyers and sellers, or others. Those third parties normally are listed in scope of the appraisal assignment itself. An appraiser's fiduciary roll is restricted to those parties who the appraiser knows, based on the scope of work or other things in the framework of the job. There are also ethical rules that have nothing to do with clients and others. For example, appraisers must store their work files for a minimum of five years - at Peerless Appraisals, LLC you can rest assured that we adhere to that rule.  We demand the highest professional integrity possible from ourselves. Working on orders that contingency fees is not something we can consider That is, we are not able to agree to do an appraisal report and get paid only if the loan closes. We don't do assignments on percentage fees. That is perhaps the appraisal industries most important rule, because it would tend to make appraisers raise the value of homes or properties to increase their fee. We set ourselves to a higher standard. Other unethical practices may be established by state law or professional organizations to which an appraiser belongs. The Uniform Standards of Professional Appraisal Practice (USPAP) also states a violation in ethics as the acceptance of an assignment that is contingent on "the reporting of a pre-determined result (e.g., opinion of value)," "a direction in assignment results that favors the cause of the client," "the amount of a value opinion," as well as other situations. We follow these rules to the letter which means you can be assured we are doing everything we can to provide an unbiased determination of the home or property value. With Peerless Appraisals you won't have any doubts that you're receiving 100 percent ethical, professional service.

Adjustment. When comparable properties have been identified, the appraiser makes adjustments to the Sales Price of each of the comparables to bring them into equivalency with the subject property, accounting for differences in location, construction quality, living area, acreage, frontage, amenities and the like. This is where the professional expertise of an appraiser is most valuable. Chattel . Personal property that may be on the subject property but which does not figure into the opinion of value in the appraisal report. Comparable or "comp". Properties like the subject property nearby which have sold recently, used as a basis to determine the fair market value of the subject property. Drive-by . An appraisal that is limited to an exterior-only examination of the Subject to make a determination that the property is actually there and has no obvious defects or damage visible from the outside. Fannie Mae's form for this type of appraisal is its 2055, so you may hear a drive-by referred to as a "2055." Fair market value . The appraiser's opinion of value as written in his or her appraisal report should reflect the fair market value of the property -- what a willing buyer would pay a willing seller in an arm's-length transaction. GLA. "Gross Living Area," the sum of all above grade floor space, including stairways and closet space. GLA is often determined using exterior wall measurements. Latent defects . A defect on the property that is not readily apparent but which impact the fair market value. Structural damage or termite infestation might be examples. MLS. A Multiple Listing Service is a proprietary listing of all properties on the market in a given area and their listing prices, as well as a record of all recent closed sales and their sales prices. Created by and used primary by real estate agents, many appraisers pay for access to these databases to aid in comparable selection and adjustment research. Obsolescence . The value of assets diminishes as its capabilities degrade or more desirable alternatives are developed. Functional obsolescence is the presence or absence of a feature which renders the property undesirable. Obsolescence can also occur because the surrounding area changes, making a feature of the property less desirable. Subject. Short for the property being appraised -- the "subject property." Useful life. The time during which a property can provide benefits to its owner. URAR . Short for Uniform Residential Appraisal Report, Fannie Mae form 1004, it is the form most lenders require if they need a full appraisal (that is, with walk-through inspection). USPAP . Short for Uniform Standards of Professional Appraisal Practice, USPAP promotes standards and professionalism in appraisal practice, and is often enacted into law in a state. It is promulgated by the Appraisal Foundation, a non-governmental entity chartered by Congress to, among other things, maintain appraisal standards. Walk-through . An inspection that includes a visit to each part of the interior of the house used in estimating value. If you have a question about any of these terms or need an explanation of an item on your appraisal, feel free to contact us

The top seven reasons TX homeowners call on Peerless Appraisals, LLC: Pre-listing appraisals (whether they're selling the home on their own or using a real estate agent) Challenge a property tax assessment To reduce their mortgage payments by removing PMI Reinstate their Home Equity Line of Credit (or HELOC) To review another appraiser's report for verification If real estate needs to be divided because of a divorce Determine the true market value of real estate in question to settle an estate in Bexar county or TX We at Peerless Appraisals understand the individual needs of a customer looking for appraisal services. While our typical clients understand the appraisal process and standard reporting formats, you as a consumer will get extra service in the form of an explanation of the process and even special consumer-friendly reporting forms if the assignment allows for them. Pre-listing Services/For Sale By Owner Since you have an emotional attachment to your home, it's often very hard to be objective about it. The professional appraisers at Peerless Appraisals, LLC will tell you what you need to know -- not just what you want to hear. We are objective. In addition to helping you set a realistic price to sell at so your house will attract interested buyers, a professional appraisal is a crucial negotiating tool once you have an interested buyer. It gives you something tangible to show your buyer. The appraisal is an independent third party's opinion of your house's value, not just how much you think your home is worth. Potential buyers know that you have an emotional attachment to your home and will be much more likely to give credibility to a professional appraiser's value estimation than yours. Appraisals to cancel PMI A preferred way to cut costs for homeowners is to get the PMI eliminated from their mortgage loan, thus saving them money on their monthly payments. PMI stands for "Private Mortgage Insurance". Your monthly payments will go down once your mortgage loan amount is below 80% of the value of your property. In most cases you can apply to a lender to have the PMI eliminated from your loan. We're seasoned in helping homeowners just like you dismiss unnecessary PMI insurance. Challenge Tax Assessment If you live in an area that is going down or not appreciating as much as other homes close to yours, your local tax assessor may have your home overvalued. This only means you are most likely paying higher taxes than you should be paying. Since your property assessment may likely go up again in the next period, the sooner you take care of things like this, the better off you'll be. An appraisal from Peerless Appraisals is your #1 weapon when contesting your property tax assessment. Recently got a freeze your HELOC? Your lender may just choose to automatically freeze your home equity line of credit (HELOC) if your property is in a declining area -- even if your specific property has not declined in value. This can be be destructive to your credit score since it may appear as though that credit line is maxed out, and also troublesome from a cash flow viewpoint. Peerless Appraisals can provide you with a professional appraisal that will help you reinstate your home equity line of credit. We Also Offer Field and Desktop Appraisal Review Services Do you need a seasoned professional to double-check your appraisal for precision, or do you desire a second opinion without the added cost and delay of waiting for a whole new appraisal? An appraiser from Peerless Appraisals, LLC can go out and check the subject and comps in question in a field review. If you're in a hurry, we'll provide you with a desk review and verify as many facts as we can using online data sources as well as our own files.  Need a retrospective review of an appraisal? We can We can assist you While usually requested by banks, you may wish to take advantage of this service if you suspect mortgage fraud related to your property.

We offer a full range of Real Estate Appraisal services, with experience in many types of property. We are also experienced in litigation support and expert witness services. Clients who have used our expert testimony services include government agencies, tax entities, financial institutions, legal and accounting firms and many other businesses. In many cases, our independent, supportable analysis has allowed clients to settle cases without going to court.  An appraiser must remain unbiased in performing an appraisal of a property. But we can consult with you and advise you about the relative strength of an appraisal presented by opposing parties. We can also perform additional research and analysis to support or discredit assumptions or conclusions. Some examples of issues we have experience with include: Valuation of "stigmatized" property Valuation as of a date in the past Valuation for condemnation and eminent domain cases Effect on value of properties with history of flood Estate settlement Effect on value caused by insect infestation Valuation for divorce, partnership, taxation issues etc. With our experience and proven track record we are ready to take on any type of appraisal assignment and our appraisal values stand up under the most severe scrutiny.

Estate settlement is an important and sometimes stressful task. As an executor you have been entrusted to carry out the wishes of the deceased as swiftly and respectfully as possible. You can count on us to act quickly and with as much sensitivity to the feelings of everyone involved. We've made it our company's goal in providing excellent appraisals that lawyers and accountants have come to rely on. We realize their needs and are acclimated to working with all parties involved. Among our staff, we are accustomed to working with law offices in writing appraisal reports that out-strip their demands. Settling an estate commonly requires an appraisal to acquire fair market value for the property affected. It's understandable that ordering an appraisal is the farthest thought from your mind. Due to this, it is possible that the time of death differs from the time the appraisal is ordered. Peerless Appraisals assures that we are familiar with the procedures and requirements needed by revenue services to produce a retroactive appraisal with an effective date and fair market value estimate matching the exact date you suffered the loss of your loved one.  The ethics provision listed within the Uniform Standards of Professional Appraisal Practice (USPAP) binds our company to confidentiality, assuring the fullest degree of privacy for you and your family. People often forget that the IRS requires reports filed to support the numbers involved in estate sales. An exhaustive report showing the appraiser's opinion of value is required to back the methods the appraiser used to come to his conclusions. In having a report supported by Peerless Appraisals, LLC's expert appraisers, you will have the peace of mind that the numbers displayed in the appraisal report will definitely demonstrate to the authorities that the numbers used are accurate and correct. An executor will be ecstatic by a report by Peerless Appraisals, LLC which will provide him irrefutable facts and numbers to deal with revenue agencies' requirements. You need not worry over anything, because we will be there to support our reports if they are ever refuted.

Checklist for homeowners before a home appraisal

Many home buyers aren't in the market for a full "appraisal" but are still in the need of some help acquiring local property and sales information. We can offer affordable sales and listing reports that will lead you through the maze of raw information. We can provide advice for you to make a knowledgeable purchasing decision with consulting services specially tailored to your needs. Buying a home is a complex process, and we understand what you're going through. There are some things customers can expect when you hire Peerless Appraisals, LLC.