• To provide the highest level of satisfaction with a professional, yet personal touch.

• To remember it is our responsibility to deliver an objective, well supported valuation on each property we appraise.

• To provide attentive, forthright service.

• To follow the Uniform Standards of Professional Appraisal Practice (USPAP).

FREQUENTLY ASKED QUESTIONS:

*If you do not see your question here, please contact us. We provide
FREE INITIAL TELEPHONE CONSULTATIONS on all inquiries.

An appraiser is a real estate professional who is trained and licensed to provide "opinions of value" on real property. In the real estate profession it is only the licensed real estate appraiser who can LEGALLY determine the value of a house or business interest.

In your real estate "journey" you may come across real estate professionals who may state that they can tell you "how much your property is worth." This is only an estimate and not a true opinion of value.

The appraising process begins when you contact Alan R. Sims Appraising. From the first encounter we will interview you about your property and your needs.

We may ask: (1) What is the purpose of the appraisal (a legal action, divorce, buying a new home, refinancing, IRS valuation-for example).
(2) Tell us about the property (how large-for example)? From there, we usually discuss fees and may schedule an appointment to look at the property.

Upon initial inspection of the property, research is done. Public records are investigated, maps, flood zone information, comparisons (also called "comps") are researched to look at sales trends in your area comparing properties similar to yours. Photographs are taken and a drawing of the floor plan is done.

If it’s a lawsuit, such as divorce or dispute, we work closely with your attorney. If it’s a purchase of a new home or refinancing of your current home, we work with your mortgage broker or real estate agent.

Here is a list of other reasons to hire an appraiser:

• to establish the replacement cost of insurance
• to contest high property taxes
• to settle an estate
• to provide a negotiating tool when purchasing real estate
• to determine an unbiased price when selling real estate
• to protect your rights in issues of condemnation and eminent domain.
• because a government agency (such as IRS) requires it
• domestic partnership dispute
• when you are involved in a lawsuit or dispute
• PMI (Personal Mortgage Insurance)
• going through bankruptcy
• and many more reasons…

As of January 2008, the requirements are:

TRAINEE LICENSE:

(1) Have a minimum of 150 hours of appraisal related education.
(2) No appraisal experience.
(3) Must work under a supervising licensed appraiser and have their training appraiser with them at the time of your appraisal.

RESIDENTIAL LICENSE:

(1) Have a minimum of 150 hours of appraisal related education.
(2) Have a minimum of 2,000 hours of appraisal experience; encompassing no less than 12 months of "acceptable appraisal experience."
(3) Must pass an appraisal exam.
(4) Can appraise "any non-complex 1-4 family property with a transaction value up to $1 million; and non-residential property with a transaction value up to $250,000."

CERTIFIED RESIDENTIAL LICENSE:

(1) Have a minimum of 200 hours of appraisal related education and an Associate Degree from a "regionally accredited college."
(2) A minimum of 2,500 hours of appraisal experience; encompassing no less than 2 1/2 years (30 months) of "acceptable appraisal experience."
(3) Must pass an appraisal exam.
(4) Can appraise "any 1-4 family property without regard to transaction value or complexity; and non-residential property with a transaction value up to $250,000."

Real estate agents are salespeople who locate homes for interested people to buy or sell homes on behalf of a home-owner. In some cases, they also assist in the buying and selling of commercial properties and vacant land. They are paid when someone buys a property in the form of a commission. Their payment is based on the price paid for the property.

The final commission fee can vary from one real estate deal, agency, or market. Typically, commissions are shared between the listing agent and the selling agent. Also, the agent’s agency also gets a piece of each commission.

Below is an example of a real estate agent’s average commission on a property that sells for $100,000:

Property Sales Price: $100,000
Overall Commission Percentage 6% $6,000

Listing Agent’s Commission (3%*) $3,000
Selling Agent’s Commission (3%*) $3,000

*Each agent will usually pay their agency a portion of their commission.

On many real estate blogs, websites, and in other venues you may see real estate agents and brokers offering "appraisals" of properties. You will also find websites available to the public which will offer to show you the value of your home. None of these services are legal appraisals.

Real estate agents/brokers can however, show you "comps" or comparisons for what homes sold for in a prescribed area. They can also do a CMA (certified market analysis). A certified market analysis is a real estate broker’s/agent’s informal estimate of a home’s market value, based on sales of comparable homes in a neighborhood. Do not be lead to believe that these are true appraisals done by a professionally licensed appraiser.

Here at Alan R. Sims Appraising we will occasionally suggest you get a Real Estate Broker’s Opinion (also called Broker’s Opinion of Value). While we are in business to earn a living, we realize there are circumstances when a Broker’s Opinion will assist you in your real estate issue and can save you the cost of an appraisal.  We will be sure to advise you of this economical route when it is warranted in your individual real estate case.

If you are a homeowner you should be armed with the most objective knowledge as to what your home is worth. The only way to get an objective, impartial, and unbiased value of your home is through a professional appraiser.

Most realtors attempt to be impartial as well, however, there is a propensity for these professionals to make a substantial sum on the sale of your home and not be impartial. Quite simply, the more your home is worth, the more commission real estate agents and mortgage brokers stand to make off your real estate transaction. The appraiser charges a flat fee that is not based on the value of your home.

Appraisers are the "checks and balances" in the entire real estate "system." Because most personal wealth in our society lies in real estate, the objective, unbiased, and impartial determination of its value is essential to the economic well being in our society. When values are falsely inflated or deflated everyone in a given area pays too much or too little in the process. By the appraiser determining accurate real estate values in an impartial way, it levels the "playing field" for all those who have a stake in private, public, or commercial real estate.

In order to assure this does not happen to you, the home buyer, insist that your mortgage broker or real estate agent allow you to hire the appraiser. This way, you will not pay the price later for those who "appraiser shop."

Currently, in this poor real estate climate, home-owners who have refinanced or purchase a home could owe more on their mortgage than the home is worth.  Also, an artificially high housing price allows a buyer to borrow more than the property is worth.

WHO "OWNS" THE APPRAISAL?

Under the Equal Credit Opportunity Act, your lender must provide you with a copy of the appraisal report upon your written request.

The appraisal is "owned" by the person who ordered it. If a mortgage company ordered the appraisal, the mortgage company owns it-even though you paid for it. By federal law, you are entitled to receive a copy of the appraisal FROM YOUR MORTGAGE COMPANY.

Unfortunately, by federal law, appraisers are NOT able to provide you with a copy. However, if the appraisal is ordered for non-lending purposes, if you ordered it and paid for it, you own the appraisal.

Appraisers are required to be objective and should not be influenced TO COME UP WITH A PREDETERMINED VALUE.

We understand that to you, your home is more valuable than anything however; we cannot honor any requests to come up with a high (or low) value. Ethically, appraisers cannot accept an appraisal assignment contingent on coming up with a pre-determined value.

No. Your tax bill will not be based on the new appraised value. At Alan R. Sims Appraising, we maintain confidentiality. The appraisal report goes in our personal files and is not shared with the local tax authorities.

If however, your property taxes are assessed by your local authorities, and you do not agree with the assessment, an appraiser can help you argue the true value of your property.

You can write to:

The physical inspection of the real property being appraised can take from approximately 45 minutes to several hours, depending upon the size and complexity involved.

After the initial inspection of the property the appraiser spends time touring the neighborhood or area. The purpose of this tour is to search for comparable sales (other properties that are similar to the property being appraised) that have sold within a reasonable time from the date of the appraisal.

When the inspection is finished, we complete the report at our office. Depending on the scope of the project, the report can consist of a short form report (typically under ten pages) to a long narrative report which can sometimes exceed a hundred pages.

A short form report usually takes between 2-5 days to complete; however this can depend on the number of clients in line before your appraisal is ordered.

A narrative report can several weeks or sometimes even months, depending upon the complexity of the assignment.

WHERE DOES AN APPRAISER GET THE INFORMATION TO COMPLETE THE APPRAISAL REPORT?

To complete your report, we get our information from a wide variety of sources. The sources include local M.L.S. (Multiple Listing Service) to see what properties are similar in your immediate area, county records, private data source vendors, interviews with the buyer or seller, information from previous area appraisals, to name a few.

We also get information on your property from the local or county tax assessor. This does not mean that your property taxes will increase because your home was appraised. The appraisal report is not shown to the tax assessor.

DO HOME IMPROVEMENTS ADD VALUE TO MY PROPERTY?

Despite what you read in home improvement magazines and other publications there can be instances where home improvements do not add value to your property.

How much value a particular improvement adds to your property can vary from neighborhood to neighborhood. Most home improvements are dictated by the wants and needs of each neighborhood.  This is why it is so very important to work with an appraiser who is familiar with your community. For example, if you live in a mountain community, a fireplace will be a desired improvement in that type home. If you live in a desert community, outdoor home improvements may provide increased value to your property.

The amount you recover for a home improvement depends on the condition of the rest of the property, the value of similar properties in the area, the availability of new properties, and the rate at which property values are changing. Because home improvements vary from one market to another and are dictated by the desires of the desires of each neighborhood, there is no hard and fast rule that home improvements will add value to your property.