WHO IS LOOKING OUT FOR YOU?

Not the Seller's agent, Buyers agent, Transaction-Brokers, Loan Officers, Lenders, Seller, Buyer? They're only interest is to close the transaction.  If the transaction does not close they do not get paid.  Who do you think they are really looking out for?

So who makes sure the value of the property is in line with the amount being paid? There are too many people exposed in the real estate process to let such a transaction proceed without ensuring that the value of the property is commensurate with the amount being paid.

This is where AppraiserPlus comes in.  An appraisal is an unbiased estimate of what a buyer might expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party, most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the true value of their property.

The appraiser is the only person that has no stake in the outcome of the transaction.  Visit AppraiserPlus or e-mail Ron for an dependent, impartial, and objective analysis of your real estate needs. 

A home purchase is the largest, single investment most people will ever make. Whether it's a primary residence, a second vacation home or an investment, the purchase of real property is a complex financial transaction that requires multiple parties to pull it all off.

Most of the people involved are very familiar. The Realtor is the most common face of the transaction. The mortgage company provides the financial capital necessary to fund the transaction. The title company ensures that all aspects of the transaction are completed and that a clear title passes from the seller to the buyer.

SELLER'S AGENT: A seller's agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with utmost good faith, loyalty and fidelity.  The agent negotiates on behalf of and acts as an advocate for the seller.  The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the property.  A separate listing agreement is required which sets forth the duties and  obligations of the broker and the seller.

BUYER'S AGENT: A buyer's agent works solely on behalf of the buyer to promote the interest of the buyer with the utmost good faith, loyalty and fidelity.  The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer's agent must disclose to potential sellers all adverse material facts actually known by the buyer's agent including the buyer's financial ability to perform the terms of the transaction and if a residential property, whether the buyer intends to occupy the property.  A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.

TRANSACTION BROKER: A transaction broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties.  A transaction broker must use reasonable skill and care in the performance of any oral or written agreement and must make the same disclosures as agents about adverse material facts actually known by the transaction-broker concerning a property or a buyer's financial ability to perform the terms of a transaction and if a residential property, whether the buyer intends to occupy the property.  No written agreement is required. 

CUSTOMER: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party's agent or as the party's transaction-broker.

APPRAISER: A person who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.  An appraiser must not perform as an advocate for any party or issue.

COLORADO APPRAISER: A person who has been granted a license pursuant to Section 12-61-706(1)(b)(II), C.R.S. as a Colorado certified residential appraiser by the board as a result of meeting the real estate appraisal education, real estate appraisal experience and real estate appraisal examination requirements established by board rule 2.3, or as a result of licensure through endorsement from another state as provided by chapter 9 of these rules, which license is in good standing

PRE-LISTING OR PRE-BUYING APPRAISAL: If you’re working with a real estate agent to list your property, more than likely they’ll provide you with a Comparative Market Analysis (CMA) that lists selected sales in your area as one of the first steps in determining what to set as the “Listing Price". This step is vital if you're going to maximize your profit and minimize the home’s time on the market.

But even if you're working with the most experienced real estate agent, it's probably in your best interest to have an "objective" third-party's opinion of value prior to signing a Listing or Buying Agreement. And that’s where AppraiserPlus comes in. AppraiserPlus can provide you with a pre-listing appraisal so both you and your agent have an accurate description of your home's features and a detailed analysis of the most recent and similar "comparable sales" or as they're commonly called, "Comps". In addition to helping you set a realistic selling price so your home will attract buyers, a AppraiserPlus appraisal can:

• Be a very valuable negotiating tool once you have a potential buyer
• Impress buyer’s with written proof of your home’s condition inside and out
• Make yourself aware of problems and eliminate last-minute repair hassles that might delay a closing
• Decrease the chances of unknown problems that cause sales to fall through
• Eliminate the wait for the buyer or their mortgage company to get the appraisal done on their own

Many people are surprised when they find out that the market value of their home is much more than they thought, so investing in a professional appraisal by AppraiserPlus could actually allow you to receive several thousand more dollars than you thought when your home is sold. Others have an inflated opinion of their home's value and an appraisal by AppraiserPlus helped them to realistically price their home in order for it to sell. An overpriced home will not attract buyers, which means no offers and no closing and that you have wasted valuable time, money, and efforts. 

Many buyers are surprised when they find out that the market value of their home is worth less than the real estate agent told them.  Real Estate Agent, Lenders, Loan Officers, Banks, work together to make the deal work.  Not necessarily to the benefit of the buyer.  They do not get paid if the transaction does not close.  Do you really think that they have your best interest in mind?  An appraisal by AppraiserPlus will reassure you that you did not pay to much.  You are about to investing hundreds of thousands of dollars in the new home you are buying.  Does it not seem sensible to order an independent appraisal that cost about $300 and buys you peace of mind?    

SO WHAT GOES INTO AN APPRAISAL? It all starts with the viewing of the home. An appraiser's duty is to view and observe the property being appraised to ascertain the true status of that property. The appraiser must actually see features, such as the number of bedrooms, bathrooms, the location, and so on, to ensure that they really exist and are in the condition a reasonable buyer would expect them to be. The inspection often includes a sketch of the property, ensuring the proper square footage and conveying the layout of the property. Most importantly, the appraiser looks for any obvious features - or defects - that would affect the value of the house.

Once the home has been observed, an appraiser uses two or three approaches to determining the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach.

COST APPROACH: The cost approach is the easiest to understand. The appraiser uses information on local building costs, labor rates and other factors to determine how much it would cost to construct a property similar to the one being appraised. This value often sets the upper limit on what a property would sell for. Why would you pay more for an existing property if you could spend less and build a brand new home instead? While there may be mitigating factors, such as location and amenities, these are usually not reflected in the cost approach.

SALES COMPARISON: Instead, appraisers rely on the sales comparison approach to value these types of items. Appraisers get to know the neighborhoods in which they work. They understand the value of certain features to the residents of that area. They know the traffic patterns, the school zones, the busy throughways; and they use this information to determine which attributes of a property will make a difference in the value. Then, the appraiser researches recent sales in the vicinity and finds properties which are ''comparable'' to the subject being appraised. The sales prices of these properties are used as a basis to begin the sales comparison approach.

Using knowledge of the value of certain items such as square footage, extra bathrooms, hardwood floors, fireplaces or view lots (just to name a few), the appraiser adjusts the comparable properties to more accurately portray the subject property. For example, if the comparable property has a fireplace and the subject does not, the appraiser may deduct the value of a fireplace from the sales price of the comparable home. If the subject property has an extra half-bathroom and the comparable does not, the appraiser might add a certain amount to the comparable property.

INCOME APPROACH: In the case of income producing properties - rental houses for example - the appraiser may use a third approach to valuing the property. In this case, the amount of income the property produces is used to arrive at the current value of those revenues over the foreseeable future.

RECONCILIATION: Combining information from all approaches, the appraiser is then ready to stipulate an estimated market value for the subject property. It is important to note that while this amount is probably the best indication of what a property is worth, it may not be the final sales price. There are always mitigating factors such as seller motivation, urgency or ''bidding wars'' that may adjust the final price up or down. But the appraised value is often used as a guideline for lenders who don't want to loan a buyer more money that the property is actually worth. The bottom line is: an appraiser will help you get the most accurate property value, so you can make the most informed real estate decisions. house.

Please visit AppraiserPlus website to learn more about our qualifications, expertise and services offered or e-mail Ron for an appraisal before you List or Buy your next Home! 

All appraisals by AppraiserPlus conform to Uniform Standards of Professional Appraisal Practice (USPAP)  

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