In these frequently asked questions (FAQs), learn about the importance of real estate appraising in Dayton and the different types of appraisals available. Understand how a property’s value is determined by analyzing market conditions, property condition, and comparable sales. Find out how long an appraisal takes and the average cost, as well as the qualifications and certifications required for a real estate appraiser in Dayton. Get the information you need to make informed financial decisions on your property in Dayton.
What is a real estate appraisal and why is it necessary?
A real estate appraisal is a professional evaluation of a property’s market value. In Dayton, it is performed by a licensed or certified appraiser qualified through the state of Ohio, who will evaluate the property’s condition, features, and location, as well as comparable sales in the area to determine a fair market value. It is necessary to have an accurate assessment of a property’s value to make informed financial decisions. Appraisals are typically procured by lenders, buyers and sellers, investors, attorneys, financial planners, inquisitive homeowners, and in some cases, tax authorities.
Are there different types of real estate appraisals?
Yes. There are many different types of real estate appraisals, and their difference can be found mostly in the scope of research and reporting necessary for each. Some appraisal types include but are not limited to, a full appraisal, a limited appraisal, a drive-by appraisal, a desktop appraisal, and a retrospective appraisal.
In theory, the opinions of value should be similar regardless of the type of appraisal (of course, except for the retrospective appraisal). But this is not always realistic that the same conclusion could be reached with such large variations in discovery and communication. Ultimately, the appraiser is responsible to determine if a scope of work, or appraisal type, is sufficient to establish a credible opinion of value.
How is the value of a property determined during an appraisal?
This is a huge question and there are volumes of textbooks out there to answer it. I will give you a short answer here. The value of a property is determined by analyzing a variety of factors such as the real estate market conditions of the city and neighborhood you are in. The property’s condition, location, site size, and specific features. The appraiser will also take into account any improvements or upgrades that have been made to the property and consider any negative factors that could affect the value.
The appraiser may use one or more of the three methodologies which are the cost approach, market approach, and income approach. For single-family homes, most often the market approach is used. This is where homes that exhibit similar relevant characteristics and have sold within a reasonable amount of time are compared and analyzed as examples of what the market is indicating that it is willing to pay for such features. These are called comparables sales or “comps”. The final value is then determined by considering all these factors and adjusting as necessary to arrive at an opinion of fair market value.
How long does a real estate appraisal take and how much does it cost?
The length of time it takes to complete a real estate appraisal can vary depending on the size and complexity of the property, its location, the scope of research and reporting required, as well as the current workload of the appraiser. On average, in Dayton, a standard full appraisal can take anywhere from 3 to 10 business days to complete; of course, with exceptions particularly during peak real estate seasons like spring and summer.
The cost of an appraisal, similarly, has a lot of factors influencing it. The complexity of the home and location, the uniqueness of certain features, how soon it is needed, the scope of discovery and communication, but also the qualifications and experience of the appraiser. On average, in Dayton, a standard full appraisal can cost anywhere from $400 to $650.
Are there any specific qualifications or certifications required for a real estate appraiser?
To become a real estate appraiser in Dayton, certain qualifications and certifications ARE required and they are set by the great State of Ohio. At a minimum, Ohio must follow the federal standards but can add to these standards if they see fit. To be a certified appraiser in Dayton, the state requires a minimum of 150 hours of appraisal-specific classroom education, 30+ semester hours of college education, and 1,500 hours of experience working in the field of no less than 12 months before an individual can quality just to take the certification state exam. Of course, the test needs to be passed as well! Then there is re-qualification by completing approved continuing education every two years.
What is the process of getting a real estate appraisal?
The process of getting a real estate appraisal typically begins with the client (such as a homeowner or lender) contacting United Valuations for a fee quote and proposed delivery date. Once agreed upon, a letter of engagement is signed, and the appraiser will then schedule a time to visit the property. During the property walk-through, they will take measurements, take photographs, and note any notable features, updates, or conditions of the property. After the inspection, the appraiser will gather comparable sales data and use that information, along with their professional expertise, to determine the market value of the property. A final report will then be prepared and delivered to the client, usually emailed in PDF format.
How often do properties need to be appraised?
Appraising in Dayton, most properties do not need to be appraised on a set schedule. Appraisals are typically required when there is a change in ownership or when a mortgage loan is being obtained. For example, when a person is buying a house, the lender will require an appraisal to ensure that the property is worth the amount of the loan being requested. Appraisals may also be necessary for situations such as when a property is being refinanced, when a property owner is appealing their property tax assessment, or when a property is being divided as part of an estate or divorce settlement. Some trusts and property portfolios may need to be re-valued every year for tax reporting.
How do I find a qualified real estate appraiser?
To find a qualified real estate appraiser in Dayton, you can start by checking with professional organizations such as the Appraisal Institute or the American Society of Appraisers. These organizations have directories of certified appraisers in your area. You can also ask for recommendations from real estate agents, mortgage lenders, or other professionals in the real estate industry. It’s important to verify that the appraiser you choose is licensed and qualified to do the type of appraisal you need, for example, commercial or residential. You can also check the appraiser’s credentials, such as certification, experience, and designations before hiring them.
In these frequently asked questions (FAQs), we hope to have informed you about the importance of real estate appraising in Dayton. and the different types of appraisals available. Understand how a property’s value is determined by analyzing market conditions, property condition, and comparable sales. Learned the process of getting an appraisal, how often your home needs to be appraised, and how to find a qualified professional for appraising in Dayton. Find out how long an appraisal takes and the average cost, as well as the qualifications and certifications required for a real estate appraiser in Dayton. Get the information you need to make informed financial decisions on your property in Dayton.
Thank you for investing the time to learn a little bit more about appraising in Dayton and how it impacts you. For more answers to your questions, please check out our other blog posts and web pages, and you are always welcome to contact us directly. FAQs on Appraising in Dayton.