Tag Archives: appraiser

Home Appraisal Questions Answered by AmeriFirst Home Mortgage – Connecticut

First time home buyers and real estate agents often work with appraisers. From repairs to below-grade footage, a home appraisal includes a lot of information for the buyer, the agent and the lender. Different mortgage programs require differing information. An FHA mortgage may have different requirements than a VA mortgage loan or a Rural Development loan. AmeriFirst Mortgage Consultant Jeremy Drobeck (http://www.1stclassmortgageservice.com/ ) talks to home appraisal expert Paul Weaver ( http://paulweaverandassoc.com/ ) about the process.

Appraisal Issues in Commercial Real Estate – Connecticut

Bill Hardin, Director of the Real Estate Institute at FIU, joins the show via Skype to discuss tips for dealing with a low appraisal situation as well as other issues faced during the appraisal process of a property.

Connecticut Certified General Appraiser

3.   State Certified General Appraiser  Allows Appraiser to appraise all types of Real Estate; residential, commercial and/or industrial property.

Educational Requirements for General Appraiser: 300 hours total (225 additional over the Provisional) consisting of the following courses: ·    General Appraiser Market Analysis and Highest and Best Use (30 Hours) ·    Statistics, Modeling and Finance (15 Hours) ·    General Appraiser Sales Comparison Approach (30 Hours) ·    General Appraiser Site Valuation and Cost Approach (30Hours) ·    General Appraiser Income Approach (60 Hours) ·    General Appraiser Report Writing and Case Studies (30 Hours) ·    Appraisal Subject Matter Electives (30 Hours)  Experience Required for General Appraiser: ·

3,000 hours of Appraisal Experience (of which 1,500 hours must be non-residential appraiser work) obtained during no fewer then 30 months, Experience documentation in the form of an appraisal log shall be submitted to support the experience claimed. ·

Applicant shall have obtained the minimum educational requirement of a bachelor’s degree from accredited college, university, or institute of higher education. ·  Effective January 1,2015 Must hold a bachelor’s degree or higher from an accredited college or university. Education and experience must be completed prior to taking an appraisal exam.

Source: Appraisal – Appraisal And Real Estate School of Connecticut

Connecticut Certified Residential Appraiser

2.   State Certified Residential Appraiser  Allows Appraiser to appraise 1 – 4 family residential property. Educational Requirements for Residential Appraiser: 200 hours total (125 additional over the Provisional) consisting of the following courses: ·         Residential Market Analysis and Highest and Best Use (15 Hours) ·         Residential Appraiser Site Valuation and Cost Approach (15 Hours) ·         Residential Sales Comparison and Income Approaches (30 Hours) ·         Residential Report Writing and Case Studies (15 Hours) ·         Statistics, Modeling and Finance (15 Hours) ·         Advanced Residential Applications and Case Studies (15 Hours) ·         Appraisal Subject Matter Electives (20 Hours)     Experience Required for Residential Appraiser: ·     2,500 hours of Appraisal Experience obtained during no fewer then 24 months, Experience documentation in the form of an appraisal log shall be submitted to support the experience claimed.         ·     Applicant shall have obtained the minimum educational requirement of an associate’s degree degree from accredited college, university, or institute of higher education. ·   Effective January 1,2015 Must hold a bachelor’s degree or higher from an accredited college or university. Education and experience must be completed prior to taking an appraisal exam.

Source: Appraisal – Appraisal And Real Estate School of Connecticut

USDA Appraisal Requirements in Your City, Your State

USDA Appraisal Requirements in Your City, Your State USDA rural housing loans are only for primary residence and must be in livable condition. They must meet state building codes and be located in a rural area. Appraisals must also meet all of the requirement set by USDA appraisal guidelines.

Basic Information About Your City, Your State USDA Appraisals:

  1. Must comply with the Uniform Standards of Professionals Appraisal Practice.
  2. Appraisers cannot use factors such as age, sex, religion, disability, or family in valuing the property.
  3. Appraisal must be ordered within 3 days of the USDA accepting the property. If the house was built less than 2 years ago, you will need an appraisal.

An appraiser makes judgments about the property’s value based on location, market value, construction quality, and amenities. Since you most likely will be looking at a single family home, they will need to look at sale comparisons as well. The appraiser must accurately report the conditions observed at the property and follow HUD standards. This means they will let you know about any needed repairs and make sure that everything is functional with no obsolescence. USDA Appraisals Before the USDA makes a loan, the agency’s interest in the property has to be adequately secure by the current value of the property in Your State. This is done through an independent appraisal by a qualified appraiser.

All appraisals must meet the following requirements:  Qualified Appraiser: Must be a state licensed appraiser who is on the USDA approved list. Standards: All appraisals must comply with the current addition of the Uniform Standards of Professionals Appraisal Practice. Timeline: The loan originator needs to order an appraisal within 3 business days of the USDA determination that the property is acceptable. Nondiscrimination: An appraiser cannot use factors such as age, sex, religion, disability, or family in valuing the property. Third Party Appraisals: The USDA may accept an appraisal by a participating lending institution.

Is your scenario eligible for a USDA Home Loan? USDA rural housing loans is only for a primary residence in Your City, and it must be in a livable condition. While loans can be made on new manufactured housing, which is permanently installed, the loans may not be available for existing manufactured housing unless the house had been financed through a USDA loan originally. These homes need to be modest in size, design, and costs. They must meet state building codes and be located in a rural area.

Keep in mind, pools are not allowed. If the house was built less than two years ago, you will need an appraisal. An appraiser makes judgments about the property’s value based on location, market value, construction quality, and amenities. Since you most likely will be looking at a single family home, they will need to look at sale comparisons as well. The appraiser must accurately report the conditions observed at the property and follow HUD standards. This means they will let you know about any needed repairs and make sure that everything is functional with no obsolescence.

For residential real estate appraisal, the lender is required to use a qualified appraiser, if the appraiser does not hold a designation from a professional organization, then the lender will have to obtain prior approval from Rural Development. In other words, the lender should use a HUD-approved/roster appraiser.

Is your scenario eligible for a USDA Home Loan? The Fannie Mae/ Freddie Mac form “Market Conditions Addendum to the Appraisal Report” is required. A foundation and crawl space inspection will be completed reporting any evidence of infestation in the house or structure. A termite inspection is mandatory if they find evidence of decay, pest infestation, or suspicious damage. Evidence of dampness in the foundation or basement is closely scrutinized looking for mold and mildew problems.

Anything that the appraiser finds will be subject to inspection and require the problems to be corrected or further inspections usually at a cost of the seller. Your appraiser will examine mechanical, plumbing, and electrical systems to ensure that they are in proper working order. As the appraiser is not a home inspector, they are only turning on and off these systems and do not make a determination on their mechanical worthiness. This examination consists only of turning on the applicable systems and observing so that a determination can be made of their proper working abilities. Turning them on and off and checking the temperatures only tests water heaters.

Source: USDA Appraisal Requirements in Your City, Your State

How to Help Appraisers Fairly Value Home Energy Efficiency Improvements – Elevate Energy

How to Help Appraisers Fairly Value Home Energy Efficiency Improvements March 6, 2014 11:46 am In 2013, we published a blueprint with the National Home Performance Council that outlines a seven-step process to make energy efficiency visible and properly valued in the real estate market. Appraisals are a key part of the process because the appraiser serves as a neutral third party who assesses a high performance home and indicates whether energy efficiency improvements contribute to the value.

We’ve witnessed real progress in the appraisal process, including enhancements to the appraiser’s toolkit to better address high performance home valuations. And in locations that have pioneered the green building and remodeling movement, we’re even seeing a growing demand for qualified “green” appraisers. However, we still have a way to go. Consistently Document Energy Efficiency Features Nothing works in the appraisal process unless high performance homes are consistently documented (see Step 1 of the blueprint).

Right now, the majority of home appraisers use Fannie Mae’s Uniform Residential Appraisal Report (also referred to as Form 1004) to provide opinions on the market value of a given property. But, this form lacks an adequate section in which to document energy efficiency features. In response to this, the Appraisal Institute created the Residential Green and Energy Efficiency Addendum to collect the additional information an appraiser needs when forming an Opinion of Value on a high performance home. The addendum has been well received, including a recent announcement that the Residential Energy Services Network will auto-populate the addendum, enabling direct transfer of a home’s potential energy performance data from builder or home owner to the appraiser.

While all appraisers have access to the addendum online, the problem is, less than 15 percent of appraisers are members of the Appraisal Institute. We’d love to see the Residential Green and Energy Efficiency Addendum used as the model for a standard, approved approach to record the details needed to value high performance homes. The approach could be defined in the approved underwriting guidelines used by larger federal or lending organizations, or government sponsored entities like Fannie Mae or Freddie Mac.

While limited in reach, we’ve seen firsthand that the industry has embraced the template and the related process. Clarifications from the government sponsored entities would formalize this model. We’d also like to see more multiple listing services follow the lead of Midwest Real Estate Data Corporation and make energy costs accessible on listings. This provides appraisers with important data to help establish a credible value opinion. Appraisers are also better equipped to do sales comparison and income approach methods when this data is available. Assign the Right Appraisers to the Right Properties Next, and logically, the right appraisers need to be assigned to the right properties.

Finding a competent appraiser who has experience in valuing energy efficiency features can be difficult. Various training initiatives are happening with some success, but lenders and appraisal management companies continue to struggle in finding qualified appraisers – or even knowing they need to assign them in the first place. An important first step would be to ensure that the existing requirements for assigning appraisers based on competency are enforced for high performance home assignments. Definitions of this competency are starting to be drafted by the Appraisal Foundation. But we see progress here, too. The Appraisal Institute is in the process of opening its Appraiser Registry to include all students who successfully complete the required sustainability courses (and consent to have their name listed on the registry), allowing for greater exposure and marketability of their qualifications and services. Before this change, the directory only listed Appraisal Institute members who had first graduated a designation course and then went on to complete sustainability courses and exams.

Education provides a great opportunity to better connect these qualified appraisers to appraisal management companies and lenders. Appraiser Sandra Adomatis suggests that appraisers, lenders, underwriters, and builders take courses together. “When all the different players in the high performance home transaction come together for training and discussion, they better understand how they can work well together toward overlapping processes and common goals,” Adomatis said. Up next, we’re honored to attend a Green Mortgage Appraisal Roundtable on March 11 in Washington D.C. Members of our team will join appraisers, lenders, Realtors, federal agencies, and other stakeholders to discuss the challenges of assigning a value to energy savings. We will continue to work toward progress on these issues through our Value for High Performance Homes campaign.

Source: How to Help Appraisers Fairly Value Home Energy Efficiency Improvements – Elevate Energy

FHA Appraisal Guidelines in 2015 – What the Appraiser Looks for

FHA Appraisal Guidelines for 2015 – What the Appraiser Looks for Apply online: Can I get an FHA Loan? LendingTree.com If you use an FHA loan to buy a house, the property will have to be appraised and inspected by a HUD-approved home appraiser. This individual will determine the current market value of the property, and will also inspect it to ensure it meets HUD’s minimum property standards. Here is an overview of FHA appraisal guidelines in 2015, based on current policy handbooks. What Is an Appraisal? Let’s start with a quick definition. An appraisal is an expert assessment of a particular product or asset (in this case a house) to determine its value. Within the context of FHA loans, the purpose of the appraisal is to determine the market value of the home that is being purchased. During this process, the appraiser will look at comparable properties that have sold recently, in the same area as the one being purchased. He will also visit the “subject house” and evaluate it both inside and out. After this review process, the appraiser will write a report to detail his findings. The report will include an estimated value of the home, as well as any required repairs. The report will then be sent to the mortgage lender for review and further action. How the FHA Process Is Different from a ‘Regular’ Transaction Home buyers and homeowners are often surprised to find that FHA appraisal guidelines include detailed instructions for inspecting the property. This is different from a standard appraisal, where the appraiser mainly wants to know what the house is worth. When a Federal Housing Administration home loan is being used, the appraiser basically has to perform double duty. Here are the primary differences: Conventional: In a typical real estate transaction, where a conventional (non-government-insured) home loan is being used, the appraiser is mostly concerned with the current market value of the property in question. That is his primary objective when visiting the house. He is only concerned with the condition of the property as it relates to the value. FHA: When an FHA loan is being used, the appraiser has two objectives. The Department of Housing and Urban Development (HUD) requires him to determine the current market value, as with any appraisal. But they also require a property inspection to make sure the home meets HUD’s minimum standards for health and safety. This is the “double duty” mentioned earlier. It’s what makes the FHA appraisal process unique. So the primary difference between FHA and regular appraisals is the level of inspection that is required by HUD. If the HUD-approved appraiser flags certain issues — such as peeling paint, loose handrails, or other safety issues — those issues must be corrected before the loan will be funded. In other words, the transaction will be put on “hold” until the discrepancies are resolved. That is not the case with a regular appraisal used for a conventional home loan. Home buyers would be wise to have a complete “regular” home inspection separate from the “health-and-safety” inspection conducted by the FHA appraiser. HUD actually encourages this. All borrowers who use this program have to sign a disclosure that says, “I understand the importance of getting an independent home inspection. I have thought about this before I signed a contract with the seller for a home.”

Source: FHA Appraisal Guidelines in 2015 – What the Appraiser Looks for

10 Most Required Repair Items Requested on a FHA Appraisal 904.612.9283 – Connecticut

With the help of Jacksonville appraisals, you can identify the problems that might slow down your FHA loan approval process.