Frequently Asked Questions

You have questions, and Qualified Appraisers, Inc. has answers.  Just click any of the links below to see the answer to your question. 

Not finding what you need? 
Contact us at qualifiedappraisermike@gmail.com or (330)844-0468.

What is a summary appraisal report?

Why would I need a home appraisal?

What is the difference between an appraisal and a home inspection?

What is the difference between an appraisal and a Comparative Market Analysis (CMA)?

What is PMI?  How can I get rid of it?

What is "Market Value"?

Where does an appraiser get the information used to estimate value?

Which home renovations add the most value?

What is the difference between a summary appraisal report and a restricted use appraisal report?

 



 

 

What is a summary appraisal report?
An summary appraisal report is the result of a process used to develop an opinion of value.  This is the most detailed process we commonly offer.  It will describe your property in full detail from the type of roof you have to your floor coverings.  Our appraisers take the time to look at all of the available details of similar properties which have sold or are for sale near your neighborhood.  They will describe your neighborhood and the conditions affecting the values in the neighborhood.  They will also provide a detailed description of how they came to their conclusions as well as all of their sources of information.  Qualified Appraisers, Inc. considers three common approaches to the valuation process.  Not all approaches will be valid for each property, however at least one approach will be used:
Cost Approach: The estimated cost of the home if it were new, minus physical depreciation, plus the estimated land value.
Sales Comparison Approach: In this approach, we make a comparison of your property to other similar properties in your area.
Income Approach: This is mostly for the appraisal of properties which produce an income.  In this approach, we estimate what an investor would pay based on what kind of income the property brings.

 

Why would I need a home appraisal?
Many people believe that an appraisal is only necessary when buying or selling real estate, or obtaining a mortgage.  However, Qualified Appraisers, Inc. receives requests for appraisals for many other reasons:

  • Lowering property taxes
  • Estate settlement
  • Lawsuit involvement
  • Divorce
  • Bankruptcy
  • Foreclosure
  • Obtaining a loan

***For more information on the uses of a professional appraisal, click here.

 

What is the difference between an appraisal and a home inspection?
A home inspector is not an appraiser.  A home inspector's report includes an evaluation of the mechanical and accessible structures in a home.  This includes the heating system and central air, interior plumbing and electrical systems, roof, attic, visible insulation, walls, ceilings, floors, windows and doors, and foundation and basement.  While an appraiser may examine the condition of many items on this list, he or she is not qualified to make judgements beyond the general condition of each item.  While a home inspector is able to thoroughly judge the working order of all accessible structures and mechanical systems, he or she is not qualified to determine the value of a home.

 

What is the difference between an appraisal and a Comparative Market Analysis (CMA)?
A CMA is based on "market trends" and does not take into consideration factors such as the condition of the property, location, construction costs, etc.  One of the most striking differences is the fact that a CMA is prepared by a real estate agent who has an interest in the value of the property, and whose income is based on how much a home sells for.  Real estate appraisers a Qualified Appraisers, Inc. are licensed and certified professionals who are paid solely based on the completion of an appraisal report.  Our fees are not connected in any way to the value of the home.

 

What is PMI?  How do I get rid of it?
PMI stands for Private Mortgage Insurance.  This insures lenders against a loss when a home is purchased with less than 20% down.  Once equity in your home reaches 20% or more, you can eliminate PMI.  Qualified Appraisers, Inc. will perform PMI removal appraisals.  For more information on steps to take in order to remove PMI, contact your lender.

 

What is "Market Value"?
As defined in the USPAP form created by The Appraisal Foundation, Market Value means: the most probable price that 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, knowledgeably and assuming the price is not affected by undue stimulus.  Implicit in this definition is the consummation of a sale of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) 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.

  

Where does an appraiser get the information used to estimate value?
Qualified Appraisers, Inc. will gather specific data such as location, condition, amenities, size, etc. during the assessment in which our appraiser will walk through your home and gather data firsthand (this will be a phone interview for the most basic Restricted Use Appraisal without an inspection.  We then gather general data regarding the market from multiple sources.  We use the Local Multiple Listing Services to obtain data on recently sold home that we may compare with yours.  We then verify the actual sales prices and other information regarding the comparable homes using tax records and other public documents.  We gather flood zone data from FEMA data outlets.  Lastly, we use our 18 years of experience in creating appraisals for other properties in similar markets.

 

Which home renovations add the most value?
This answer depends on the location of the home.  While adding central air may significantly increase the value of a home in Miami, Florida, it may not be as important in Fargo, North Dakota.  Generally speaking, kitchen and bathroom remodeling adds the most value.  A common trap, however, is over-improving the home, making it difficult to get much of a return on your investment.  Contact Qualified Appraisers, Inc. at qualifiedappraisermike@gmail.com or (330)844-0468 for more information on which improvements bring the most return in your market.  

 

What is the difference between a summary appraisal report and a restricted use appraisal report?                                                                     

A summary appraisal report is the most detailed and in-depth report we provide.  This report is accepted among all institutions requiring a URAR.  It is best for those serious about selling a property or making major home improvement investments.  A restricted use appraisal is generally best for an individual homeowner's use when trying to decide wether or not to sell, make minor home improvements, or dispute taxes.