A person might need an appraiser for several reasons. Sometimes a person may wish to put their home up for sale but not trust the realtor or may not be ready for a realtor and may seek an independent valuation of their property. first from a licensed and/or Certified appraiser. Sometimes a person (s) may be a tenant or renter of a home, and they may wish to buy it from the owner. They may seek an appraisal of the home to get a valuation to negotiate with the homeowner and see if they can afford it. There may be a time when the owner wishes to lower his property tax assessment and may seek an appraisal of his or her property to lower his annual property tax amount. In a divorce situation, both parties may seek an appraisal performed on a property to settle their financial affairs. Or one party may wish to buy out the other person's share of the property. When the property owner passes away, sometimes an accountant or attorney may instruct the heirs of the property (sometimes the trustee) to get an appraisal done as of the date of death of that person to establish a valuation basis for the property at that time (the date of death). Banks and/or lending institutions may order an appraisal on a property to establish the valuation for a loan and/or for refinance purposes.

A typical report will contain general information regarding the neighborhood (proximity to supporting services) and current market conditions as well as specific items involving the property (i.e. lot size, gross living area, bedrooms, bathrooms, year built, and condition). It will also have a sketch of the property, showing where the rooms are located as well as other features (i.e.pool, spa,cov.patio) and structures (garages, workshop, guesthouse, etc.). The sketch is usually based on a physical measurement of the property during the appraisal inspection. The report also contains photographs of the home (both inside and out) and comparable sales used in the report. The report contains information and/or characteristics from other sales comparables ( including listing or pending sales) that are then compared to the information and characteristics of the subject property to provide an indicated value of the subject property for each comparable sale used. Sales comparables are then analyzed. Most weight is generally given to those sales comparables with similar characteristics to the subject property, such as similar size, condition, and/or amenities. After careful analysis of the sales comparables, a final valuation of the property is provided. Finally, a report should contain an appraiser certification page or pages indicating that the appraiser did, in fact, inspect the property and has no financial interest in the property. Among other things, the certification should state that the appraiser has no bias with respect to the property that is the subject of the report and no personal interest with respect to the parties involved.

I subscribe to the Multiple Listing Service (MLS) and Collateral DNA. I also, on occasion, get information from a Title Company. The MLS generally provides useful information on the details of the property. These will include items such as if the property has been remodeled or is a "fixer". Also, if it has a pool, spa, guesthouse, view, etc. It usually provides pictures of the property listed and the broker's phone number. This is the source that realtors use. Collateral DNA provides a lot of public records and information. It provides a plat map of the street where the subject property is located and comparable sales. This source will provide general information on the property such as zoning, flood map info., taxes, a legal description, the lot size, year built, bedrooms, bathrooms, gross living area, last transfer date, and sales amount of the property as well as the sales history.

Generally, the person who pays for the report owns it. This is usually the client. This could be a homeowner, heir, trustee, tenant, bank, and/or financial institution. Also, note to send a copy to another party, the appraiser must get authorization from the client and/or owner of the report.

PMI or Private Mortgage Insurance is a type of insurance conventional mortgage lenders require when homebuyers put down less than 20% of the home's purchase price. You will need to pay a mortgage insurance premium---the amount to receive PMI--- though how you do so can differ by lender.PMI can increase the cost of your loan and is typically included in your total monthly payment.PMI is a type of mortgage insurance typically required for conventional loans and government-backed loans such FHA and USDA loans. In most cases, you may need to make an upfront payment at closing, then additional monthly payments and payments toward your mortgage.

Home appraisals usually cost between $300 and $450. The price depends on where the home is, how big it is, and how nice it looks. Appraisers might charge a flat fee or by the hour. It's not okay if they want to get paid a percentage of the home's value.