I’m Mike Acquisto, so this is Shawna Questo, luxury real estate broker, sitting right next to me. Today’s real word in real estate is the appraiser.
We’re still in the A’s.
The definition is an individual qualified by education, training and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent. That’s the definition. So we’ll go ahead and use that in a sentence. So the word is appraiser and that to use it in a sentence, it would be.
An appraiser, the appraiser came out and measured the home and gave his opinion of value
Perfect in appraisal, depending on where you are in the economy and how busy things are, typically takes a couple of days to schedule and typically three days to complete and return, just kind of depending they’re going to have a cost associated with them, depending on how large a structure is or how big the home is or how unique it is and how much land. But they’re going to have a typical cost of about four to seven hundred dollars. It depends that average on average here with our home size and lot size, that’s typically
And it’s going to depend a little bit of what’s needed and what the requirements are based on the loan and the lender. And, you know, if it’s FHA or VA or what the things are, they’ll be typically paid in advance by the borrower. The lender will be the person who often will go ahead and order them. And so they’ll be probably a card paid in advance. So then those are completed and then it’s going to go through most likely an appraisal management company.
They’re chosen at random. Totally at random picked. Correct. And there could be a relationship. There could not be. It just depends. Right. And then you’re completed. But they give their opinion of value. They’re going to take into account comparable sales within the last six months, if available, in close proximity to the subject, which is the property that’s getting the value.
And so close proximity, condition and features and functions of the home. Yeah. And they’re going to have a choice of a couple of different methods to use. So the cost approach is when it’s how much is it cost to reconstruct is probably not going to be utilized. Right. They’re probably going to use the sales approach, which is going to come up with the price that other homes have sold for how long they took to sell, how similar they are, and they’ll come up with a value there. So most likely use sales approach in a traditional real estate setting.
So my sweet dad was an appraiser. Yes. And we got to witness this firsthand. You know, they get paid very minimal. They are licensed. They pay dues. You know, they have a lot of guidelines from the state of Texas. They do. They get paid very little and they get abused. It’s always the appraisers fault if something doesn’t make a value. Right? Never the realtor who price the property, it’s all it all falls back on that person. Love on your appraisers. They work hard.
You guys, they are out there working hard just as we are. So give them a break. You know, just as realtors, you have some that may be a little better than others, but that’s an any business. But you know what? They’re in our in our real estate industry, and we should respect them and give them a little more credit than they get right now. I think so.