Appraisal New Orleans has answers to "Frequently Asked Questions"
Appraisal New Orleans is always ready to handle any inquiries you might have about appraisals in New Orleans and Orleans County.
Contact us today to talk about how we can help you with your valuation problems.
(See list of FAQ's)
An appraisal report is a thought process leading to an opinion of value.
This opinion or estimate is concluded using a formal process that typically uses the three main "common approaches to value".
One of the methods in use is the Cost Approach, which evaluates what it would cost to restore the improvements to the property, less the depreciation and physical deterioration, plus the land value.
Easily the most common approach in finding the likely sales price of a home is the Sales Comparison Approach which involves concluding a comparison to comparable homes close by.
Usually, the Sales Comparison Approach is the most definite indicator of market value of a home.
One of the least common approaches in appraising houses is the Income Approach, which is commonly used to figure the value of a property based on what an investor would pay based on the capital produced by the property.
(See list of FAQ's)
An appraiser offers a professional, unbiased opinion of market value, to be used in making real estate transactions.
Appraisers document their expert investigation in appraisal reports.
(See list of FAQ's)
There are a lot of reasons to order an appraisal from Appraisal New Orleans with the most common reason being real estate and mortgage transactions.
Other reasons for ordering an report include:
To receive a loan.
To reduce your property taxes.
To help a homeowner realize if they owe less than 80% of their home's value and remove Primary Mortgage Insurance.
To contest inflated property taxes.
To settle an estate.
To provide you an edge when purchasing a home.
To find a reasonable price when putting your home on the market.
To protect your rights if your property is being taken by means of eminent domain in a condemnation case.
Government agencies such as the IRS require an appraisal on every house.
If you are ever involved in a lawsuit.
If you need more information regarding the appraisal process, please click here.
Home inspectors do not estimate an opinion of value and do not use the same forms as appraisers.
An inspection is a third-party evaluation of the accessible structure and mechanical systems of a home, from the roof to the foundation.
The standard house inspector's report will contain an evaluation of the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.
(See list of FAQ's)
Simply put, it's like comparing opera to country.
What the CMA depends on are ill-defined trends.
Appraisals use comparable sales which are verifiable resources.
In addition, the appraisal looks at other factors like condition, neighborhood and construction prices.
All a CMA does is generate a "ball park figure."
Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value.
But the biggest difference is who's doing the report.
A CMA is written by a real estate agent who may or may not have a true grasp of the market or valuation concepts.
A certified, state licensed professional who has formed their livelihood on valuing homes in and around Orleans County creates the appraisal.
Moreover, the appraiser is an unbiased voice, with no conditional interest in the value conclusion, unlike the agent, whose income is tied to the price of the home.
Every appraisal should indicate a credible estimate of value and will document the following:
The client and whose purposes the appraisal is to serve.
How the appraisal is supposed to be used.
The reason for the appraisal.
Precisely what "value" attribute is being reported and what that value means.
The effective date of the value opinion.(Sometimes this is in the past or maybe the future for new construction!)
Pertinent property characteristics, including: location, physical characteristics, legal attributes, economic factors, the real property interest in question, and non-real estate items included in the valuation, such as personal property, trade fixtures and even intangible factors.
All known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
Division of interest, such as fractional interest, physical segment and partial holding.
What was entailed in the activity of completing the appraisal.
For a more in depth view of what goes into an appraisal report click here: Sample Appraisal Report
(See list of FAQ's)
In communicating an appraisal report, each appraiser must make sure of the following:
The appraisal used an apropos analysis of the data.
That major errors of omission or commission were not committed individually or collectively.
That appraisal services were not rendered in a careless or negligent fashion.
The final appraisal report was understandable, legitimate and not easily discredited.
There are intense education and practical experience requirements that must be met in order to achieve the designation of "licensed appraiser" in Louisiana.
Plus, appraisers must abide by a stringent industry code of ethics and respect national standards of practice for real estate appraisal. The tenets for developing an appraisal and reporting its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).
(See list of FAQ's)
Most of the time, appraisers are employed by lenders to render a value opinion on a house involved in a loan transaction - to make sure the house is indeed adequate collateral for the loan.
Appraisers also provide opinions in litigation cases, tax matters and investment decisions.
(See list of FAQ's)
One of the primary activities of an appraiser is to compile data.
Data can be classified as either Specific or General. Specific data is collected from the property itself; Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection.
General data is collected from a variety of sources.
Local Multiple Listing Services (MLS) have data on recently sold homes that could be used as comparables.
To verify actual sales prices, we look at items in the assessor's office and other public documents.
Appraisers often have to report when a property lies in a flood zone, so that information is retrieved from a FEMA data outlet such as a la mode's InterFlood service.
And last but not least, the appraiser assembles general data from his or her past experience in creating appraisals for other properties in the same market.
(See list of FAQ's)
An appraisal is a worthwhile whenever the value of your home is relevant to some financial decision.
For those selling a home, you'll want to figure out a price that gets you the most profit but doesn't leave your home on the market too long; an appraisal can help with that.
If you're buying, it makes sure you don't overpay.
If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly.
Simply put, a home is often the single, largest financial asset anybody owns. Don't make decisions in the dark with a professional appraisal.
(See list of FAQ's)
PMI is an acronym for Private Mortgage Insurance.
PMI covers the lender in the event a borrower defaults on the loan and the market price of the home is lower than what is owed on the loan.
Once you can prove the amount you owe on your home is less than 80% of the home's market value, you can make a case to your lender to drop the PMI.
Did you have less than 20% to put down on your mortgage? Call Appraisal New Orleans today at 5043049647 to see if you can get rid of your Private Mortgage Insurance payment.
(See list of FAQ's)
We begin with an inspection of the property.
During this process, we will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home's general condition, and take several photos of your house for inclusion in the report.
Inside, make sure it is clutter free and that we can find our way to things like furnaces and water heaters. In the yard, trim any bushes so we can be free to get an accurate measurement of outside walls.
You can make the inspection go faster and improve the quality of the appraisal report by having the following things on hand:
A plot plan or survey of the house and land (if readily available).
List of personal property to be sold with the home.
Any paperwork, such as a title policy with information on encroachments or easements encroachments or easements.
Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available).
A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending".
(See list of FAQ's)
In real estate appraising, Market Value is commonly defined as:
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
(See list of FAQ's)
In most real estate transactions, the appraisal is ordered by the lender.
Even though it's the buyer that eventually pays for the report, the lender is the intended user. The
buyer is certainly entitled to a copy of the report - it's usually bundled with all the other closing documents - but is not allowed to use the report for any other purpose without permission from the lender.
It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage.
In these cases, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not stated otherwise, the home owner can use the appraisal for any purpose.
(See list of FAQ's)
Like all things real estate, this is dependent on a home's location.
For example,
adding a central air conditioner in to a home in the South may add significant value, while putting one in a home near the Pacific Northwest might not have much impact.
No matter where you go, however, renovating a kitchen is almost always a safe investment.
According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home.
Bathrooms weren't far behind, returning 85%.
On the contrary, something that may not increase your value would be painting just for the sake of redecorating.
