About Residential Real Estate Appraisers

While a broker does do a lot of negotiating in the real estate deal, it is the appraiser who is ultimately responsible for determining a home's value.

Role

An appraiser plays a crucial role in the buying and selling of homes. It is this person who essentially determines the value of a home. Though the economy, housing market, price of comparable properties and unique property features all influence how much a home should be listed for, it is the appraiser who evaluates the home and informs the housing lender of how much he believes it is worth.

Becoming an Appraiser

Though every state has its own guidelines regarding an appraiser's qualifications, most require candidates to complete approximately 75 hours in a state-approved training class. Once this is completed, they are considered appraiser trainees. An additional 150 hours of classes are needed to become licensed residential appraisers, who are allowed to appraise housing units that consist of four units or less and are valued at less than $1 million. A certified residential appraiser must complete 210 hours of classes and can appraise any dwelling with four units or less, regardless of the property's value. One should also contact his state's regulatory board to ensure that there are no additional classes, exams or certifications that he must obtain.

What is Appraised

When an appraisal walks onto a property, he is looking at many things. Common elements that you will find on any appraisal report include the core details of a project, such as square-footage, number of bedrooms and bathrooms, types of building materials used and amenities. These will be compared to two to three other properties of a similar nature. He will also note any incidentals that he believes may lower the property's value, such as a broken toilet, leaky roof or cracked driveway. The property's location will also factor into the report. He will note whether the property is difficult to access or if it resides on a major street. He'll also provide an estimate for the sales price at the time that the appraisal took place.

Appraiser vs. Home Inspector

Though an appraiser is, by definition, inspecting a home to determine a fair price, he is not a home inspector. Home inspectors check a home for safety and functionality, meaning that it is their job to find problems that need to be fixed in order for a property to be safe, functional and inhabitable. Though an appraiser might note any outright problems with the home, such as a leaky roof, he will not inspect all appliances and building components. This is why it's so important for homebuyers to hire a home inspector, as an appraiser cannot, and will not, catch all of the home's underlying problems.

Ethics

The real estate market commonly becomes a family affair, with parents lending their children money to buy a house and brother-in-laws acting as brokers or at least open-house hosts. A real estate appraiser, however, needs to remain unbiased in order to provide a fair, accurate number upon which to base the home loan. Remember, too, that hiring an appraiser whom you believe will price the home more than it's worth will only hurt you. The high price may disqualify you from the loan or, if the home drops significantly in value, leave you with a large loan to pay. At the same time if he prices it too low the lender may question his appraisal, perhaps pulling his license. It could also hurt your re-sale value if you choose to sell quickly, as a buyer will likely take the price you paid for the home into consideration.

Resources

• State Certification Education
• State Appraisal Regulatory Agencies