Market value, mortgage/refinancing, estate planning, property tax appeals, matrimonial, sale price decisions, and more.
Market value, mortgage/refinancing, estate planning, property tax appeals, matrimonial, sale price decisions, and more.
My name is Ben Mickelson (CT certified residential appraiser, RCR.0001727) and if you’re visiting Millbrook Partners today, you’re probably not only looking for an appraiser, but have some questions about the profession/process, too. I’m here to help.
With almost 20 years of appraisal experience in Lower Fairfield County, CT, we process
My name is Ben Mickelson (CT certified residential appraiser, RCR.0001727) and if you’re visiting Millbrook Partners today, you’re probably not only looking for an appraiser, but have some questions about the profession/process, too. I’m here to help.
With almost 20 years of appraisal experience in Lower Fairfield County, CT, we process hundreds of orders annually at valuations totaling over $300 million. We serve an array of clients including lenders, attorneys, relocation companies, real estate agents, and of course, the homeowner. Our fees are highly competitive and we cover most major property types, with particular expertise in high-value homes, large estates, new construction, and waterfront properties. Most importantly, Millbrook Partners is committed to providing you with the highest quality appraisals, best customer service, and the fastest turnaround times in the profession.
All of our assignments comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Consequently, we do not accept assignments with contingencies such as:
So take a few minutes to look around, in particular the FAQs. Again, we’re here to help.
Organized as FAQs, this section also includes QYSBAs (Questions You Should Be Asking).
1. What should you look for when hiring an appraiser?
Of the two most important things to consider when choosing an appraiser, the first is whether he or she has experience with the purpose and type of appraisal you need. If the answer is yes, by far th
Organized as FAQs, this section also includes QYSBAs (Questions You Should Be Asking).
1. What should you look for when hiring an appraiser?
Of the two most important things to consider when choosing an appraiser, the first is whether he or she has experience with the purpose and type of appraisal you need. If the answer is yes, by far the next most important factor is geographical competency. Does the appraiser know the local market? The tricky part here is that while it helps when an appraiser is from and/or has lived in the area a long time, it doesn’t mean one from farther away is a bad choice. Still, if you’re looking for a tiebreaker between experienced appraisers, picking one that is close by is always a good bet.
2. How can I find a qualified appraiser?
Putting aside that you have found one here at Millbrook Partners: If you want some first-hand references and/or knowledge, the best people to ask are local real estate agents, your attorney, or even your local bank. After that, the Internet is clearly the best place to look. After all, that’s where you found me and these helpful FAQs, right? Still, at the risk of overstating the obvious, if you want to narrow your search, simply enter your hometown and state followed by “appraiser” or “real estate appraiser” into your favorite search engine to get what should be a manageable list of appraisers. If you for some reason want to cast the widest net possible, the best place to look is the National Appraiser Registry at www.asc.gov, which lists all licensed and certified appraisers in the country.
3. What is an appraisal?
An appraisal is defined as the act or process of developing an opinion of the value. This opinion can be given verbally, but in most cases are written. In real estate appraisal, this opinion is developed under the guidance of the Uniform Standards of Professional Appraisal Practice or “USPAP” for short. Considering how official all that sounds, you might be surprised to know that appraisal is not an “exact science.” In fact, most appraisers consider appraisal to be a combination of science and art. Why? Because despite what some websites might have you believe, there is no universal formula for determining value. Real appraising is a much more complex and deliberate process. The most important thing you should know about how your appraisal is written is that a good, honorable, and knowledgeable appraiser will always produce one with complete objectivity, proper methodology, and well-supported conclusions. To learn more about USPAP, please visit www.appraisalfoundation.org.
4. What is the difference between a certified appraisal and a broker’s price opinion (BPO)?
This is actually one of the most important things to know when it comes to getting an opinion of value of your property. A certified appraisal is a formal, impartial estimate or opinion of value, usually written in report form, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data. It’s prepared as a result of a retainer, for reliance by identified parties, and for which the appraiser accepts responsibility. Only a state certified appraiser can provide a certified appraisal. Meanwhile, a broker’s price opinion is an informal estimate of market value, based on comparable sales in the neighborhood and other market data. The most important difference between a certified appraiser and broker or real estate sales agent is their motivation. A certified appraiser is independent, impartial, and objective. Their only concern is to deliver a fair and accurate appraisal.
5. Why is an appraisal necessary?
Prepare for a broad, but relevant answer. Because much of the nation’s wealth lies in real estate, determining its value is essential to the economic stability and well-being of society. Without a doubt, the professional opinion of a good appraiser influences the decisions of people who own, manage, sell, purchase, invest in, and lend money on the security of real estate. This is why it’s absolutely imperative that an appraiser should always be an objective and impartial third party in the lending process. Without the appraiser’s ability to serve as a vital "check in the system," protecting real estate buyers from overpaying for property as well as lenders from over-lending to buyers becomes a difficult task. As we’ve seen over the past couple of decades, when the real estate market doesn’t go well, the problem can not only become a national one, but a global one.
6. Where does an appraiser get the information needed to complete an appraisal?
An appraiser gets information from a wide variety of sources, most typically from the local Multiple Listing Service, tax assessor records, and interviews with sellers and buyers, local real estate professionals, and of course you, the homeowner. Other sources include county courthouse records, private public record data vendors, and office files from previous appraisals. Since the quality and reliability of each source can vary, it’s up to the appraiser to weigh each piece of information before using it to process a report. Not always an easy task, but that’s what we’re paid to do.
7. What should I have ready when the appraiser comes to my property?
No one knows your property as well as you. Make a list of special features and/or upgrades, such as a remodeled kitchen or new roof, or at least tell the appraiser about them. If you’re comfortable with it, let the appraiser know how much you spent. Also tell your appraiser about any nearby/relevant off-market sales that may not show up on the local MLS or other data sources. Lastly, it’s always helpful (but certainly not required) to tidy up and turn on all the lights since photos are virtually always a requirement.
8. What does an appraiser look for during the inspection?
At your property, the appraiser will try to document as much as possible about the physical characteristics of your home as well as the land. Some things may seem obvious, like the size, quality, and overall condition of the improvements. Others things may not be so obvious, like the dwelling’s layout, or market-accepted amenities versus ones that aren’t as common (e.g. an in-ground pool versus an indoor hockey rink), etc. An appraiser also considers more than just the size of the land. For instance, does the site have good utility? Where is the house positioned on the lot? Does it have enough of a backyard? And so on. Lastly, an appraiser will generally consider only permanent fixtures and real property. Because things like above-ground swimming pools, hot tubs, and small sheds aren’t permanent structures, they typically aren't included in the valuation.
9. What improvements add the most value to my home?
If only it were so simple. There are dozens of things a homeowner can do – renovate the kitchen, update the baths, replace the roof, paint the interior, etc. But just how much value an upgrade will add to your home can vary widely from market to market. From a common-sense standpoint, one recommendation is that if you’re going to upgrade something, don’t do it piecemeal. For instance, don’t paint just one room, paint them all. Don’t just replace a few windows, replace them all. And so on. On a related note, keep in mind that (depending on the market) you may not get a dollar for dollar return on your investment, especially under declining market conditions. The opposite is potentially true for appreciating market conditions, but again, it depends on the type and significance of the improvements.
10. Can you tell me how much my home is worth before you leave the house?
This may be the most frequently asked question appraisers get at an inspection. Unfortunately, there is no way to accurately answer it until a certain level of research and analysis has taken place. A good appraiser will typically research the subject home and potential comparables prior to inspection, but it’s only afterward – once all the comparables have been seen and photographed, after all the raw data has been processed, after any conflicting information has been reconciled, and the report has been written – can an appraiser provide a truly professional opinion of market value.
11. If my appraisal comes out higher than my tax assessment, will my real estate taxes go up?
In a word: No. Much like the attorney-client or doctor-patient privilege, an appraiser is required to maintain confidentiality with the client, which would either be you (if you ordered the appraisal directly) or the bank (in a mortgage related appraisal), not the local tax assessor.
12. How long does an appraisal take?
It would be great for both you and the appraiser if it only took as long as the physical inspection of your property, but the reality is that a good appraisal takes time to produce. A good appraiser may spend as much as an hour or more gathering subject and comparable sales data prior to the property inspection. For a typical residential appraisal, the physical interior and exterior inspection can take anywhere from 15 minutes to over an hour, depending on the size and/or complexity of the property. Once that’s done, the appraiser then typically “drives” all the comps, taking photos of them along the way. This can also take up to an hour, depending on the size of the neighborhood and/or distance traveled. Once the field work is done, the appraiser then completes the report back at the office. A typical single family residential report usually takes between another three to six hours to complete, sometimes over the course of a few days.
13. Can I get a copy of the appraisal from the appraiser? (Who “owns” the appraisal?)
The answer to this question partially depends on who “owns” the appraisal. If you order a “private” appraisal for non-lending purposes, such as for a tax assessment appeal, then you’ll own the appraisal and receive a copy directly from the appraiser. Mortgage-based appraisals are another story. If your lender orders an appraisal, then the lender owns it, even if you paid for it. In this case, you can only get a copy from the lender (not the appraiser), but by federal law under the Equal Credit Opportunity Act they must provide you a copy at your written request. That’s very important for you to know – a lender is not allowed to keep you in the dark for any reason.
14. Can I use an appraisal for another lender?
An appraisal ordered by one lender can sometimes be used for another lender, but this is very rare and stipulations vary from lender to lender.
15. Can I hire my own appraiser for a home loan?
The lender typically selects the appraiser for a mortgage loan. On rare occasions, however, such as when a lender is out of state or across the country, the lender will sometimes ask the borrower to find an appraiser.
16. How much is a typical appraisal?
Simply put, residential appraisal fees can vary widely and are typically based on the “complexity” of the property and the market in which you live. This may sound self-serving, but you really don't want to shop for the lowest fee. As the old saying goes, you get what you pay for and most appraisers who charge higher fees do so because they will give you the best product and turnaround time for your money. That still shouldn’t stop you from getting as many bids as you deem necessary, but always keep in mind that the most qualified appraisers will give you the information you need to make the best decisions on your property.
17. What if I don’t agree with an appraisal?
A good, honorable, and knowledgeable appraiser will always produce one with complete objectivity, proper methodology, and well-supported conclusions. But that doesn’t necessarily mean you’ll agree with the results. The first thing you need to know is that, ethically, appraisers cannot accept an assignment contingent on a certain appraised value, direction in value, or minimum or maximum value. If your appraisal was done for lending purposes and you think the appraiser missed relevant sales or valuable features in your home, contact your loan officer. If you think fraud was involved or the appraiser was inexperienced, lazy, incompetent, or all of the above, contact your state appraisal licensing agency. Bear in mind that in both instances, you’ll need to have more than just “I think the value was too low (or too high).” You need to specifically explain why. “He didn’t use XYZ sale, he missed a bathroom, ignored my kitchen renovations,” things like that.
18. What is an appraiser and how can I become one?
In the simplest of terms, an appraiser is a real estate professional who specializes in providing opinions of value (i.e. “appraisals”). Minimum requirements to become a certified (or “licensed”) residential appraiser vary from state to state. In Connecticut, all requirements can be found at the Department of Consumer Protection site here: https://portal.ct.gov/DCP/License-Services-Division/All-License-Applications/Real-Estate-Appraisers