| The Appraisal Process Are you familiar with the appraisal process? If not, we can help you gain that understanding with this resource. Here you will obtain a basic understanding of how real estate appraisals and appraisers work.
The Appraisal Process
The first thing you need to know is that an appraisal is a third-party estimate of the value of a piece of property at a particular point in time. An appraisal can do one of two things. It can either affirm your offer price or contradict it and become a point for further negotiation.
All appraisals must conform to guidelines that are set by the Federal Reserve. That being said, however, you should know that every appraisal is ultimately a subjective analysis of a property's current market value. A true market value can be difficult to ascertain in markets where prices are volatile, and where property varies widely. Therefore, to determine current market value, an appraiser will compare the price of your home with that of at least three comparable homes that are in the area, and have sold within the past six months, they will then proceed to adjust for differences in the properties (For example, we at The Rich Group provide our clients with regular updates, and will make recommendations based on activity results). An appraiser will physically measure and inspect the home to make comparisons, and may also take photographs to include in the report with floor plans, and a site map. Be advised that an inspection by an appraiser is not a home inspection. To learn more about home inspections and what is involved, please refer to our Home Inspection resource, or contact us. Potential Problems Although appraisers are certified by the individual states under federal guidelines, only half the states require actual licenses. Thankfully, the vast majority of states do, in fact, require appraisers to pass a written examination and have at least 75 hours of continuing education, as well as 2000 hours of direct experience through an apprenticeship to be certified. Furthermore, most appraisers also must abide by professional and ethical standards that are set by industry and organizations. However, due to poor training, not every appraiser is effective at his or her job. Those who are inexperienced appraisers can create problems for their clients, and this is something you should be aware of. You need an appraiser you can trust, and that is why at The Rich Group we have a certified team of individuals who can ensure that any potential problems you may be worried about, can be left in the past. | 
