Home Appraisal Values: The Best Time to Have an Appraisal Done and Who to Choose For the Job

Home appraisal values are needed when you plan on buying or selling a home, or even taking out a mortgage for part of the home property value. A home appraisal value is used by lenders, local tax officials, realtors, and other professionals to determine the value of a home.

The question is: when do these appraisals need to be done and who should do them? Any time that you want to know your home property value you will need to have an appraisal done. The best time to have an appraisal performed depends on your motivations.

If you're looking to sell your house, you should have an appraisal done before making any renovations that you think will improve the property value of the home. An appraiser will be able to tell you if the cost of the item your thinking of replacing or fixing will be returned in the ultimate sales price.

For example: Adding new windows to your house can cost say........$12,000. These new windows may help your home sell quicker, but may not return the 12k you spent in the final sales price of the property. In this example, I think it would be prudent to spend $350 on an appraisal, to save $12,000.

If you're looking to buy a home, the lender will take care of ordering the appraisal. You will not be the appraiser's client, (the lender will be the client) but you will get a copy of the appraisal. If you're not obtaining financing, when you purchase I would highly recommend hiring an appraiser so you don't over pay for a property.

The appraiser's you want to hire with the most education requirements are Appraisal Institute designated appraisers. The two main designations appraisers will have are the SRA and MAI designations. The MAI designation is for commercial properties and residential, while the SRA designation is just for residential properties.

These appraisers's are in the top 2% of appraisers in the country, because of the educational requirements and job experiences required for designation. The beauty of the situation for you, the consumer is, it doesn't cost more to hire a designated appraiser. The same $350 - $450 you would pay for a licensed appraiser, you will pay the same for a licensed and designated appraiser!

Home Appraisal Values for Homes Already Built

Home property value plays a big role in the real estate market and without a complete and accurate market value appraisal there is no way to tell exactly what the property is really worth. An appraisal will consider many different factors associated with the home, and then place a value on the property based on these relevant factors:

  • Identification of the value problem to be solved
  • A Scope of Work Determination
  • A Data Collection and Property Description Period
  • Time to perform Data Analysis
  • Site (Land) Valuation
  • Perform the Application of the different Approaches to Value
  • A Reconciliation of Value Indications and Final Opinion of Value
  • Finally, a Report of Defined Value to you the client

Homes Currently Under Construction and Their Home Appraisal Values

If you're having a home custom built or constructed then home appraisal values may seem more complicated. After all, if the home is not done yet how would an accurate market value appraisal be performed?

There are a few methods that can be used in this situation, depending on the home appraiser you have chosen and the construction completion level of the home. Obviously if the home is completed then determining the house appraisal value may be easier, but it can be done before the construction has finished.

This process may require a little more information and some extra steps but it is possible.

A home being constructed can have a varying market value appraisal, depending on many factors. Until the home is completely finished there is always the possibility that changes will be made that can change the value significantly. If this happens then you may incur the cost and inconvenience of having the home appraisal values reassessed.

It is usually better to wait until the home is finished and then have the house appraisal value determined. This will provide the most accurate assessment of the home value and prevent any mistakes or changes that could affect the appraisal final value determination.

Factors Involved In Home Appraisal Values

During a market value appraisal the professional will consider many different factors, including the neighborhood, the appearance, upkeep, and style of the home, landscaping, and other considerations.

Before you have a home property value appraisal done you should look at the home closely, and determine if any maintenance or other steps could be done to increase this value. Flowers, shrubs, and other landscaping components can add to the curb side appeal, but don't increase the value of a house.

If your home is being custom built and is still under construction there are still things you can do to help improve the home property value given by the appraiser. Make sure that all the construction drawings are accurate, and that no changes will be made to these plans, before you arrange for home appraisal values to be assessed.

Since the home is not built completely, the plans will be used by the appraiser to help determine the final structure and layout. Even a simple change like adding a second small bathroom or home office can change the house appraisal value, so you want to make sure all the construction changes have been addressed before the appraiser is brought in.

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