FAQ- Real Estate
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 requiste to a fair sale, the buyer and seller, each acting prudently, knowledgeable 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 owner / buyer pays for the report as part of closing costs, the lender retains the right to use the report or any information contained within. The home owner / 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 the home owner engages an appraiser directly. In these cases , the appraiser may stipulate how the appraisal can be used : PMI removal, estate purposes, selling or buying decisions , the home owner could use the appraisal for any purpose, except for a lender as reports for lending purposes have to be ordered by the lender and can not be accepted with home owner's name and also the actual report form for a lender is different from one that would be used by an individual .
Be sure that you advise the appraiser what the appraisal is to be used for and then the appraiser can advise you the home owner to the type of form and report that you require.
How do I get a copy of my appraisal ?
The lender typically gives you a copy of your report at closing with your other closing documents . If you are working with a lender out of state you may have to request a copy of the report in writing to a particular office . The appraiser can not give you a copy of the report .
I paid for the appraisal, but I changed my mind and did not close with that lender can I get a copy of the report from the appraiser ?
No. The appraiser can not release a copy of the report to you . The copy of the report has to be requested from the original lender . If dealing with a large lender , requesting directly from the broker you were dealing with is typically the easiest . Many lenders have been requiring borrowers to pay for the appraisals up front , so if the borrower does change their mind they ( the lender / broker ) is not paying for the appraisal out of their pocket . The appraiser is to be paid regardless if a loan closes or not.
How do I get ready for the appraiser ?
After the appraiser has contacted you and set up an appointment time, the next step is the home inspection . During the inspection, the appraiser will take photos of the exterior and the interior, and extra photos of special features such as a pool, fireplace, etc . The appraiser will measure the improvements and also question you of any special features and any upgrading that has been completed on the home , such a new roof, new heat pump system, etc.
The best thing you can do to help the appraiser is to ensure easy access to the exterior of the home, trimming large bushes, restraining dogs inside a kennel or other area .
During FHA inspections, the appraiser will also be operating the water system and checking that water heater works, checking heat / air system for operation, checking garage door openers , various light switches, electric outlets or lighting fixtures and must have access to crawl spaces and attic spaces along with the normal inspection and if you have a well and septic system they will also be measuring the distances. So advising the appraiser of septic field and tank location if it is at ground level and not readily observable is very helpful.
If your home is a manufactured home the appraiser will be searching for the HUD plates on exterior of the home and also the HUD compliance certificate within the home which is a large sticker with a picture of the US map and has the date your home is manufactured along with serial numbers needed for the report as well as for your lender. This sticker is never located in the same place . Typical locations are in master closet, cabinet door in kitchen under sink or above refrigerator , possibly in electrical panel or in a bathroom cabinet.
Other items that can be helpful for the appraiser are:
Copy of survey
Deed or title
A list of the personal property that is being sold with the home (boat, furniture, etc ) if applicable
A list of the recent improvements that have been made to the home
A copy of the original plans for reference if your home is a custom built home | 
