Orlando Appraisal Blog

Unacceptable Appraisal Practices

The following are examples of unacceptable appraisal practices:

• development of or reporting an opinion of market value that is not supportable by market data or is misleading;
• development of a valuation conclusion based either partially or completely on the sex, race, color, religion, handicap, national origin, familial status, or other protected classes of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property;
• development of a valuation conclusion based on factors that local, state, or federal law designate as discriminatory, and thus, prohibited;
• misrepresentation of the physical characteristics of the subject property, improvements, or comparable sales;
• failure to comment on negative factors with respect to the subject neighborhood, the subject property, or proximity of the subject property to adverse influences;
• failure to adequately analyze and report any current contract of sale, option, offering, or listing of the subject property and the prior sales of the subject property and the comparable sales;
• selection and use of inappropriate comparable sales;
• failure to use comparable sales that are the most locationally and physically similar to the subject property;
• creation of comparable sales by combining vacant land sales with the contract purchase price of a home that has been built or will be built on the land;
• use of comparable sales in the valuation process when the appraiser has not personally inspected the exterior of the comparable property;
• use of adjustments to comparable sales that do not reflect market reaction to the differences between the subject property and the comparable sales;
• not supporting adjustments in the sales comparison approach;
• failure to make adjustments when they are clearly indicated;
• use of data, particularly comparable sales data, provided by parties that have a financial interest in the sale or in the financing of the subject property without the appraiser’s verification of the information from a disinterested source;
• development of an appraisal or reporting an appraisal in a manner or direction that favors the cause of either the client or any related party, the amount of the opinion of value, the attainment of a specific result, or the occurrence of a subsequent event in order to receive compensation or employment for performing the appraisal or in anticipation of receiving future assignments; or
• development of or reporting an appraisal in a manner that is inconsistent with the requirements of the USPAP in place as of the effective date of the appraisal.

What to Look for in an Orlando Appraiser

When it comes to buying or selling a home in the Orlando area, one of the most important people involved in the process is the appraiser. The Orlando appraiser offers the experiences, knowledge and skills to properly evaluate the property and provide a good appraisal for its value. The conclusion of the appraiser sets the baseline for the value of the home from which an informed price can be set.

However, while appraisers are independent parties who have no vested interest in the home itself, they are still human beings that may make mistakes or errors in judgment which may translate into thousands of dollars being lost because of a faulty appraisal. In order to ensure that your appraisal process is the best possible, you will need the services of the best Orlando appraiser.

The Five Things to Look for in an Orlando Appraiser

Here are the five aspects you will need to see in the appraiser you choose in the transaction of buying or selling your home. While even the best appraisers can make mistakes, they are far less likely to occur if you get the right one.

Education & Training: The better the education and training, the better the appraiser will be. Look to see if they received their education at recommended places such as the Appraisal Institute (AI) which is arguably the most respected. Otherwise, places such as the American Society of Appraisers (ASA) or Independent Fee Appraisers are good substitutes.

Experience: Although the number of years of experience is not too important, it is a good indicator of just how reliable an Orlando appraiser should be. Since their reputation in terms of providing good services is a big part of why they are hired, an appraiser who has 10 years or more of experience with this as their primary form of employment is a good indicator that they must be doing something right.

Qualifications: Naturally, the proper appraiser must have all the appropriate licensing and qualifications necessary to hold the position. This is the minimum requirement for any Orlando appraiser and must be verified before viewing their other attributes.

Area Knowledge: While good appraisal skills carry over in all areas of the country, an appraiser that has worked in the Orlando area for some time will have advantages. They will know far more about the local real estate market, historic trends and the type of things to look for or pay more attention to when appraising a home.

References & Reviews: Virtually every appraiser has references they will have for you to demonstrate the quality of their services. While references are important, keep in mind that like any good business person they will only tell you about the ones who really enjoyed their work. If you can, find reviews of their services from customers and see if there is a pattern either good or bad that indicates the quality of their work.

Once you have looked over these five aspects of the Orlando appraiser, you should then check their fees and see which one offers the best services for the lowest price so that you can get the most for your investment.