When buying or selling a real estate property, an accurate evaluation of the property is very important. Especially, when there is tough competition in the real estate market. Proper real estate appraisal often helps in finding out the real market value of the property. Therefore, you need to find a good real estate consultant/appraiser.
Appraisers are the real estate agents/consultants who are experts in finding out the accurate market value of a property. There are a number of appraisers in the market and choosing a good one is not an easy job. Following are some points you need to consider while choosing an appraiser.
License and accreditation
Before hiring a real estate appraiser, make sure you check the license, and find out whether the appraiser has license for carrying out appraisal in the state where your property is. This helps in hiring a valuator, who is authorized for carrying out the appraisal process potentially in a particular state.
Education and training
While hiring an appraiser, the educational background as well as the training the appraiser has undergone to satisfy the state's appraiser requirements should be considered. Many good appraisers carry a professional designation issued by the Appraisal Institute, which is a proof of an appraiser's commitment to ethical standards.
Each designation requires different education and experience, and most designations apply to a specific area. Research on various designations and choose one that is appropriate and matches your specific needs.
Service area of the appraiser
Make sure that an appraiser you are choosing specializes in your area, as the appraisers from other areas may not be as knowledgeable as the local appraiser. Some appraisers serve two or three areas, whereas others specialize in a single area. Local appraisers have more firsthand knowledge compared to non-locals.
For residential users, considering a local appraiser would be more appropriate as the properties that are commercial have more common aspects of value requiring an appraiser to research outside the market area.
Experience in real estate transactions
An appraiser's profession is not an easy job. It takes years of work experience to get the right exposure and to become a competent appraiser. So, make sure that the appraiser has enough experience in real estate transactions. Hiring experienced appraisers will be beneficial as they do their work quickly and effectively compared to those who just started their career.
Experience in handling various properties
Even if an appraiser has a license for all residential or commercial type properties, it doesn't mean that he/she is experienced in handling all types of properties. See to it that an appraiser you are choosing has experience in handling various types of properties. Essentially, make sure that he has experience in appraising properties that are similar to the property you want to get appraised.
Good market data bank
Good appraisers need to have two or three market data sources and other MLS (multiple listing services used by all real estate agents/appraisers). This serves as a means for finding out the recent and similar sales available and should be able to cross refer the information for each property comparable, as to ensure maximum efficiency.
Check how much the appraiser charges for carrying out the valuation of a property. Make sure that the appraiser is charging fair price for performing the valuation process. Research online. Remember, there is no set fees for an appraisal process and all the appraisals are negotiable.
Make this your last consideration, keeping in mind that you get what you paid to receive.
Choosing a right appraiser helps you get the right valuation for your property. Not only that, a professional appraiser will also guide you properly throughout the process and makes sure that you get a profitable deal.
Spire Real Estate Valuation & Advisory, Inc is an Indiana Corporation with special strengths in appraisals, brokerage, and consulting. We provide a professionally qualified resource to advise our clients on Spire Advisory commercial real estate brokerage. We strive for excellence, and work to listen to the needs of clients to provide the best service available. To learn more, visit us at www.spireadvisory.com.