Life of a Real Estate Appraiser

Life of a Real Estate Appraiser

Appraiser Philippines

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The Benefits of Hiring Real Estate Appraisers

By: Erin Huffstetler

Real estate appraisers can be a real benefit to buyers, sellers and even to homeowners.

What Does a Real Estate Appraiser Do?
As the name suggests, a real estate appraiser is someone who is trained to appraise the value of real estate. He evaluates the size, amenities and condition of a home, and then compares the home she's appraising to other homes in the area. After researching recent sales in the neighborhood, she will establish a fair market value for the home.

The Benefits of Hiring a Real Estate Appraiser
To fully understand the benefits of hiring a real estate appraiser, consider the following:

Benefits for Sellers

• Can help you to establish an appropriate list price for your home.
• Can help you to justify your chosen list price, should a buyer question the price or try to talk you down.
• Can help you to identify areas of your home that require attention.
• Can help you to determine how your home compares to others in the neighborhood.

Benefits for Buyers

• Can help you to determine if the list price is fair and appropriate for the home you are considering.
• Can help to flag problems with the home that you might have overlooked.
• Can help you to determine if a home's price is in line with the price of other homes in the neighborhood. An appraiser will provide you with information about the actual sales prices of other homes in the neighborhood.
• Can help you to negotiate a price reduction with the owner, should the appraisal come back lower than the list price.
• Can help you to get the owner to agree to do more work on the home prior to the sale.
• Can help you to determine if you will be able to get a loan for the asking price-mortgage lenders generally will not approve a loan that exceeds the appraised value of a property.

Benefits for Homeowners

• Can help you to establish the value of your home for a refinance.
• Can help you to establish the current value of your home if you are trying to get rid of your private mortgage insurance (PMI).
• Can help you to establish to the value of your home if you are going through a divorce or otherwise dividing up property.
• Can help you to establish the value of a home that is part of an estate.
• Can help you to determine how much insurance you need to take out on your home.
• Can help you to settle an insurance claim.
• Can help you to dispute your property tax assessment, if you think it's too high.

Protect Your Interests
Real estate appraisers can add expense to a real estate transaction, but when you consider all of the benefits of hiring an appraiser, it's certainly worth the cost.

Astelè -- Your Place in Mactan

Understanding RESA

Real Estate Service Act

Your Appraiser

What Appraisers Do

What is an Appraisal?

An appraisal is a professional appraiser's opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience, and professional judgment of the appraiser.

Appraisals may be required for any type of property, including single-family homes, apartment buildings and condominiums, office buildings, shopping centers, industrial sites, and farms. The reasons for performing a real property appraisal are just as varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. For example, appraisals are prepared for:

• Mortgage lending purposes
• Tax assessments and appeals of assessments
• Negotiation between buyers and sellers
• Government acquisition of private property for public use
• Business mergers or dissolutions
• Lease negotiations

What is the Role of the Appraiser?

The role of the appraiser is to provide objective, impartial, and unbiased opinions about the value of real property—providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real estate. Appraisers assemble a series of facts, statistics, and other information regarding specific properties, analyze this data, and develop opinions of value. Each appraisal assignment challenges the appraiser's ability to put analytical skills into practice, exercise sound judgment, and communicate effectively.

 Who are the Appraisers?

The Republic Act 9646, sec. 3 (a) defines that “Appraiser, also known as Valuer, refers to a person who conducts valuation/appraisal; specifically , one who possesses the necessary qualifications, license,  ability, and experience to execute or direct the valuation/appraisal of real property.”

Also, in Section 3 of the Real Estate Service Act Law (RESA Law), it states that “The act of rendering an opinion of value is the person who shall be licensed under the Professional Regulation Commission and the Professional Board of Real Estate Service.”

As further defined on sec. 3 (g) Real Estate Practitioners shall refer to and consist of the following:
Real Estate Consultant- a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

Real Estate Appraiser- a duly registered and licensed NATURAL PERSON who, for a Professional fee compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form.

What are the several types of definitions of value sought?

There are several types of definitions of value sought by a real estate appraisal. Some of the most common are:

• Market value – In International Valuation Standards (IVS) definition, it is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer  a willing seller in an arm’s length transaction, after proper marketing  where the parties had each acted knowledgeably, prudently  without compulsion.

• Value-in-use is the net present value (NPV)of a cash flow that an asset generates for a specific owner under a specific use.

• Investment value – in IVS definition, it is the value of an asset to the owner or a prospective owner for individual investment or operational objectives.

• Insurable value - is the value of real property covered by an insurance policy.

• Liquidation value - may be analyzed as either a forced liquidation or an orderly liquidation is a commonly sought standard of value in bankruptcy proceedings.

Why hire us?

One of the most important issues involved in purchasing a property is developing an opinion of what it’s worth so that you can make an informed offer to purchase.  A professional appraisal report performed by a qualified, PRC licensed appraiser can provide you with an objective, third party opinion of a property’s current Market Value.  And for the small price of this service, you can give yourself “peace of mind” prior to making an offer to purchase that you’re offering a fair price for the property. 

Whether you choose to sell your home on your own or use the assistance of a real estate practitioner, a professional appraiser can help you make a better educated decision when determining your selling price.

The appraiser has no vested interest in what amount the house sells for.  It’s easy for them to step in and give you the information to help you make your decision.  Appraiser fees are based on efforts to complete the report and not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

       Our Appraisal Service includes:

•          Property Appraisal
•          Due Diligence
•           Investment Analysis
•          Market Analysis
•                 Transfer of  Title
•          Property Management