OUR OUTSTANDING WORK, YOUR PRECISE HOME VALUE™

Each appraisal should include:

• The client and other intended users
• The appraisal’s purpose
• The type of value contained and a definition of that value
• The effective date of the appraisal
• Pertinent property attributes: location, physical, legal, and economic attributes, the real property interest in question, and some non-real estate items (personal property, permanent equipment installations, even intangible considerations, etc.).
• Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and the like.
• Division of interest, such as fractional interest, physical segment and partial holding
• What was involved in the process of completing the assignment.

Typically, the mortgage lender orders the appraisal to ensure real estate involved in a mortgage transaction is adequate collateral for a loan.

Private Mortgage Insurance (PMI) protects the lender in case a borrower doesn’t pay on the loan and the value of the house is less than what is owed on the loan. Once you can prove the amount you owe on your home is less than 80% of the home’s market value, you can make a case to your lender to drop the PMI.

Did you have less than 20% to put down on your mortgage? Call Professional Appraisers of Texas today at 903-235-6776. You may be able to cancel your Private Mortgage Insurance premium.

During this process, we will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report.

Real estate agents often provide a Comparative Marketing Analysis (CMA) using local market trends to generate a “ballpark figure.” A licensed appraiser uses comparable sales to deliver a defensible and carefully documented opinion of value that can be validated by records.

A home inspection is done to determine the condition of a house, whereas a home appraisal is done to determine the value of the house.

A home inspection investigates the structure of the home from bottom to attic, evaluating the condition of items such as the HVAC system, electricity, the plumbing, the overall structure, etc.

A home appraisal investigates both the house and other factors, such as location, comparable home prices, and the like to determine the home’s value.

The following items can help your appraiser provide an accurate appraisal, quickly:

• Records on the latest purchase of the property in the last three years
• Written property agreements, such as maintenance agreements for a shared driveway
• Any documentation with info about encroachments or easements
• A list of major home improvements, installation date, cost, and permit confirmation.
• Copy of the current listing agreement, broker’s data sheet, or pending sale.

For mortgage transactions, the lender orders the appraisal, either directly or through a third party. Even though it’s the buyer that eventually pays for the report, the lender is the intended user. The buyer is entitled to a copy of the report – it’s usually bundled with all the other closing documents – but is not entitled to use the report for any other purpose without permission from the lender.

It’s different when it’s the homeowner engaging the appraiser for things outside securing a mortgage. In these scenarios, the appraiser may state the purpose of the appraisal; for PMI removal, or estate planning or tax challenges, for example. If not noted otherwise, the homeowner can use the appraisal for any purpose.