When hiring an appraiser, what should be asked?

[dtownjbrown]

Ive been lurking this forum for a couple of days reading posts, asking questions and gathering information. I want to be well-informed before I take the next step and choose an appraiser. I need to hire one for a tax-related issue with my home and was wondering if anyone could give me some "dont forget to ask" tips.

Right now, the only questions I have are based on the things that confused or concerned me when reviewing my pre-purchase appraisal. They are........

- How long will the appraisal take?
- Will you need inside access? (a trick question to weed out the "lazy")
- What method will be used to determine my home's value?
- If comparable method, how many properties will be in the report?
- How will repairs & updates, or lack thereof, affect the value?
- Which reporting format do you use, narrative or a standard form?
- If standard form, which one (1004, 1025, 2000, 2055 or generic)?
- How soon will the report be finished?

Any suggestions for other things I might want to ask or need to clarify? Thanks in advance,

jb

 

[Thomas Fiehler]

What is the date that the value needs to reflect? I recently completed an appeal case in the Cincinnati area. The county stops their search in October for a valuation as of 1/1. By doing that, they missed a great comp next door to the subject. Of course that resulted in a lower value of about 150K. You also need an experienced appraiser; one that has completed a few of these assignments and not a rookie. As to the report form, I would suggest a non-lending form. The type of property will usually dictate what format is to be used.

 

[Lee Lansford]

How about "Do you REALLY know what you're doing?"

Just kiddin'...sort of.

Though some here will object, I offer that you should seek out the service of an appraiser who is a designated member of one of the professional appraiser associations who are founding members of The Appraisal Foundation (you can "google"). If you know nothing else about an appraiser, the probability of finding a well-qualified appraiser will be enhanced vs. opening the telephone book and picking anyone.

As to your suggested questions, they are not so bad, but many appraisers might respond in similar fashion...and you still would not be certain who is better qualified.

 

[Scott Kibler]

If you can, get a referral from an attorney or accountant who utlizes appraisal reports for divorce work, estate planning or settlement, or other similar uses. They would be more likely to prize competence over expediency unlike mortgage lender types.

 

[dtownjbrown]

What is the date that the value needs to reflect?

I was told by the County Revisions Board that appeal cases should reflect the CURRENT tax year, which in my county's case in 2008. So when selecting comps to determine the value of my home, I have to only look at sales between 1/1/2008 and 12/31/2008.

You also need an experienced appraiser; one that has completed a few of these assignments and not a rookie.

Yes, I am looking for someone who is experienced but am trying to figure out how to determine that by asking the "right" questions instead of taking their "word" for it. I also want to find someone who is ETHICAL and HONEST. I'm not totally sure yet (Im still doing some research) but I think the person who did my pre-purchase appraisal might have been one of those "bad apples" we've been reading about in the papers. I started a thread about it on the ASK AN APPRAISER forum, here's a link to it in case you're intereted in a little background on what got me started looking for an appraiser in the first place: http://appraisersforum.com/showthread.php?t=152010

As to the report form, I would suggest a non-lending form. The type of property will usually dictate what format is to be used.

A non-lending form? I havent come across that term yet in my research. My pre-purchase appraisal was done on a 2055 9-96 form so I went to the Fannie Mae website to see a list of other types of forms. Are all the ones I listed in my original post "lending"? Do non-lending forms have a number designation like the Fannie Mae forms? I want to get a look at them to familarize myself with the information captured on them.

My property is a single story, 2bed/1bath, bungalow-style home built in 1924. What type of report format "should" this type of property dictate?

How about "Do you REALLY know what you're doing?" Just kiddin'...sort of

LOL....actually, that question used to be on the top my list but I moved it down to the bottom for more effect.

Though some here will object, I offer that you should seek out the service of an appraiser who is a designated member of one of the professional appraiser associations who are founding members of The Appraisal Foundation (you can "google").

Yeah, Ive been witness to that objection already. One of my other question posts turned into a sort of "I know you are but what am I" type debate among some of the responding posters. Thanks for the suggestion but I dont think I want to go there again

As to your suggested questions, they are not so bad, but many appraisers might respond in similar fashion...and you still would not be certain who is better qualified.

Great, I was hoping they were okay. What I really want to learn is what kinds of answers to expect, so that I can tell a "scripted" one from a "experienced" one. Any suggestions?

If you can, get a referral from an attorney or accountant who utlizes appraisal reports for divorce work, estate planning or settlement, or other similar uses. They would be more likely to prize competence over expediency unlike mortgage lender types.

What a great idea, that's exactly what Im looking for.....someone whose more likely to take there time and do a thorough report instead of someone who is used to "chunking" them out quickly to meet financing deadlines.

Thanks to you all for your feedback.....keep 'em coming

 

[Mike Kennedy]

1. Are you a Licensed or Certified Appraiser. Residential or Commercial?

2. when did you enter the business, when did you get your Certification (if Cert.)

3. when was the last appraisal you did in my neighorhood (if any)? What type of property and street name (if applicable)?

4. what data sources do you utilize beyond the MLS; are you a Member of the local MLS? the Board of Realtors? are you also a Real Estate Agent or do you appraise on a full-time basis?

5. what is your License or Certification Number ( verify online and with your State Appraisal Board, any complaints pending etc.)?

6. are you Insured?

7. will you be doing the appraisal yourself or utilizing an Assistant of some type?

8. have you ever used my property as a comparable sale for another appraisal?

9. what method of estimating the living area of my home do you use?

10. after site observation visit, approximately when will I receive the completed report?

11. may I contact you in writing should I have any questions upon reviewing the report and will you agree to respond in writing?

12. what information will you require prior to accepting the assignment?

13. will you supply at least one professional reference and give me your permission to contact that person?

14. have you done any recent appraisals for homeowners at all" if so, when? may i contact that homeowner?

15. what is your reporting format and typical fee for this type of assignment? can you supply me with a Sample, Engagement letter?

 

[Hamlet]

Welcome to our forum.

What is required to produce a credible appraisal will depend on the intended use of this appraisal and is something that will be discussed between you and the appraiser that you hire. That is part of the development of the Scope of Work.

Good advice has been given as far as checking experience and references. That would be the best way to approach hiring an appraiser and be sure to use someone local to your market area.

Good luck to you.

 

[Jan Roseberry]

Choose one the appraisers that the county hires for independent fee work, the appeal will be much smoother. I think you can find out in the recorder's office, doubt the auditor will tell you.

 

[Mountain Man]

One thing I've told many people who have called me over the years is ask your local banker... I don't want to know who you use to make loans, I want to know who you would use if your own son/daughter was buying a house? A good portion of my business is working for people buying houses, having a hard time selling, and working with first time borrowers. I honestly enjoy helping people get into a house they can afford, and enjoy consulting for those who need help selling.

 

[Howard Klahr]

While there has been quite a bit of good advise already provided, I wish to add to the list focusing more on tax appeal work. As an appraiser, they may not act as an advocate but only provide their independent unbiased opinion of value. You might be better served to locate a real estate tax consultant. A tax consultant can take the assignment on contingency basis and you will then only have to pay a fee if they are successful with the appeal. This type of service is typically based on the amount of savings in real estate taxes and is an advocate on your behalf.

This is not to say that an appraisal would not be beneficial, but that an appraiser can only testify in an unbiased independent manner. Also, valuation for tax appeals is NOT the same as doing appraisals for financing. If you do choose to hire an appraiser, ask them about their background and experience handling property tax appeals in your county. Their references should also be related to this type of work. The opinion of a mortgage broker or bank officer does not correspond to your objective except with regard to their reliability in performing assignments.

I hope this has been helpful and welcome to the forum.