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.  

WASHINGTON (AP) – June 12, 2015 – Average long-term U.S. mortgage rates jumped this week to their highest levels this year, with the key 30-year rate topping 4 percent for the first time since late 2014.

Rates have been surging amid signs of improvement in the economy, which have pushed bond prices lower and bond yields higher. Mortgage rates often follow the yield on the 10-year Treasury note, which reached a high for the year of 2.49 percent Wednesday. That was up from 2.37 percent a week earlier.

The increase in mortgage rates has come during the height of the spring homebuying season.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage climbed to 4.04 percent this week from 3.87 percent a week earlier. It's the first time the benchmark average rate has exceeded 4 percent since last November, when it was 4.02 percent. The rate on 15-year fixed-rate mortgages increased to 3.25 percent from 3.08 percent.

A striking sign of improvement in the economy came last Friday, when the government reported that U.S. employers added 280,000 jobs in May. That was a surprisingly robust tally at a time when consumers are hesitant to spend and some key industries like energy and manufacturing have been struggling.

The report from the Labor Department showed that employers seem confident that the economy is regaining its footing after shrinking at the start of the year and that their customers' demand will accelerate. And the new data led many economists to predict that the Federal Reserve will raise interest rates as early as September because the economy might no longer need the stimulus of near-zero rates. The Fed has kept them at that level for more than six years.

Despite their recent surge, though, mortgage rates remain low by historic standards. A year ago, the average 30-year rate was 4.20 percent and the 15-year was 3.31 percent.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan rose to 0.6 point from 0.5 point.

The average rate on five-year adjustable-rate mortgages increased to 3.01 percent from 2.96 percent; the fee declined to 0.4 point from 0.5 point. The average rate on one-year ARMs fell to 2.53 percent from 2.59 percent; the fee remained at 0.2 point.

For information on the loans we provide here through Sunbelt Appraisals, visit our FHA Appraisals page.

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