A property appraisal is an impartial, professional assessment of a specific property's value at a given time, supported by relevant market data and conducted by a licensed or certified appraiser. Appraisals can be used for various types of real estate and are commonly ordered for a range of purposes. The most common reason for an appraisal is to determine the current value of a property a lender is considering financing. This allows the lender to ensure they can recoup their losses if the borrower defaults on the loan. Appraisals are used for both home purchases and refinances.

An appraiser's responsibility is to offer an impartial and expert assessment of a property's market value, which typically aids in financial transactions. The appraiser presents this thorough evaluation in a detailed report.

The most common reason to get a property appraisal is for real estate and mortgage transactions. However, there are several other important reasons to obtain an appraisal, including: Obtaining a loan Reducing your tax burden Establishing the replacement cost for private mortgage insurance (PMI) Fighting high property taxes Dealing with an estate Gaining an advantage when purchasing real estate Determining a reasonable property value when selling real estate Protecting your rights in a condemnation case

The cost of a home appraisal by KC Home Appraisal starts at $425, but can increase depending on several factors. These include the size and complexity of the property, the availability of comparable sales data, and the geographical location. On average, a home appraisal in the United States costs $475. Homeowners can expect to pay more for the appraisal if their home is relatively large or complex, as this requires the appraiser to spend more time assessing the property. Additionally, appraisals of unique homes, luxury properties, or residences in remote locations with limited comparable data will generally be priced higher. The final cost of the appraisal is directly correlated with the time and effort the appraiser must expend.

KC Home Appraisal offers home appraisal services across the greater Kansas City area, serving the following counties: In Missouri, the counties include Cass, Clay, Jackson, and Platte. In Kansas, we cover Johnson, Leavenworth, Miami, and Wyandotte.

The key difference between an appraisal and a home inspection is that a home inspector does not provide an opinion of the property's value, whereas an appraiser does. A home inspector's role is to thoroughly investigate the physical condition of the home, from the roof to the foundation. Specifically, the standard home inspection report will assess the integrity and functionality of the home's major systems and components, including the heating, cooling, plumbing, electrical, roof, attic, walls, floors, windows, doors, basement, and visible structural elements. In contrast, an appraiser's primary focus is to determine the home's market value based on factors such as location, size, condition, and recent sales of comparable properties. So while both provide valuable information, an appraisal and a home inspection serve distinctly different purposes in the real estate process.

To be honest, they have nothing in common. The CMA uses market trends to create most of their business. An appraisal is based on comparable sales that can be verified by records. Also, the appraisal checks other factors like condition, neighborhood and building costs. All a CMA does is generate a "ball park figure." Being a documented and containing a carefully investigated opinion of value, appraisals are defensible and stand up in legal situations. But the biggest difference is the person creating the report. A CMA is created by a real estate agent who may or may not have a true grasp of the market or valuation concepts. The appraisal is created by a licensed, certified professional who has made a career out of valuing properties. Further, the appraiser is an independent voice, with no vested interest in the value of a home, unlike the real estate agent, whose income is tied to the value of the home.

Each report must reflect a credible estimate of value and must identify the following: The client and other intended users. The intended use of the report. The purpose of the assignment. The type of value reported and the definition of the value reported. The effective date of the appraiser's opinions and conclusions. Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items. All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature. Division of interest, such as fractional interest, physical segment and partial holding. The scope of work used to complete the assignment.

In communicating an appraisal report, each appraiser must ensure the following: The information analysis used in the appraisal was appropriate. Significant errors of omission or commission were not made individually or collectively. Appraisal services were rendered in a careful and diligent manner. A credible, well-supported appraisal report was communicated. Most states require real estate appraisers to be state licensed or certified. These licensed/certified appraisers are trained to provide unbiased opinions based on extensive education and experience requirements. To become licensed or certified, appraisers must fulfill rigorous training in real estate valuation. Additionally, appraisers must adhere to a strict industry code of ethics and comply with national appraisal practice standards. The Uniform Standards of Professional Appraisal Practice (USPAP) govern the development and reporting of appraisals, with enforcement ensuring compliance.

Visit the US Government's Appraisal Subcommittee website: https://www.asc.gov/appraiser and search the Appraiser Registry.

A licensed residential appraiser is qualified to evaluate one to four residential units that are not complex, as long as their transaction value is under $1 million. For complex residential units, the appraiser can assess one to four units with a transaction value of less than $400,000. A certified residential appraiser can appraise one-to-four residential units regardless of value or complexity.

Real estate appraiser licensing and certification requirements vary significantly across states. Typically, becoming a licensed or certified appraiser involves completing extensive coursework, passing exams, and gaining practical experience. After obtaining a license, appraisers must complete continuing education to maintain their credentials.

Gathering data is one of the primary roles of an appraiser. Data can be divided into Specific and General. Specific data is gathered from the home itself. Location, condition, amenities, size and other specific data are gathered by the appraiser during an inspection. General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. Flood zone data is gathered from FEMA data outlets, such as Metro Appraisals' InterFlood product. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.

Obtaining a professional appraisal is crucial when the value of your home or other real estate plays a role in a major financial decision. An appraisal helps you price your property accurately if selling, and protects you from overpaying if buying. It also ensures the fair division of assets in an estate settlement or divorce, as a home is often a person's most significant financial investment. Knowing the true market value empowers you to make sound, informed financial choices.

Private Mortgage Insurance (PMI) protects lenders against losses on homes purchased with less than a 20% down payment. Once the homeowner's equity in the property reaches 20%, they can request to have the PMI removed, allowing them to start saving immediately. Here are six effective ways to eliminate PMI: Wait until you qualify for automatic or final termination of PMI. Request PMI cancellation when your mortgage balance reaches 80% of the home's value. Pay down your mortgage earlier to reach the 80% threshold faster. Refinance your mortgage to get a new loan without PMI. Reappraise your home to potentially show it's worth more, allowing you to cancel PMI. Expand or renovate your home to increase its appraised value and remove the need for PMI.

The first step in the appraisal process is a site visit from the appraiser. During this inspection, the appraiser will measure the home, assess the layout and condition of the interior rooms, and take photographs to include in the final report. To facilitate this, homeowners should ensure the appraiser has easy access to both the exterior and interior of the property. Trim any landscaping that could obstruct measurements, and make sure the appraiser can easily access items like the furnace and water heater. Additionally, providing the following documentation can help the appraiser complete a more accurate and efficient assessment: A survey of the house and property The deed or title report with the legal description A recent tax bill A list of any personal property included in the sale A copy of the original house plans By preparing the home and supplying relevant documents, homeowners can support the appraiser in producing a thorough and timely valuation.

Market value or fair market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

In most real estate transactions, the lender orders the property appraisal. While the home buyer pays for the appraisal as part of the closing costs, the lender retains the right to use the report and any information it contains. The home buyer is entitled to a copy of the appraisal, which is typically included with the other closing documents, but cannot use the report for any other purpose without the lender's permission. The exception occurs when a homeowner directly engages an appraiser. In these cases, the appraiser may stipulate how the appraisal can be used, such as for private mortgage insurance (PMI) removal, estate planning, or tax challenges. If not otherwise specified, the homeowner can use the appraisal for any purpose.

The value added by home improvements can vary significantly depending on the local market. For example, installing central air conditioning may greatly increase a home's value in a hot climate like Houston, Texas, but have little impact in a cooler region like Buffalo, New York. As a general rule, the most valuable home renovations are kitchen remodels. According to a national survey, kitchen projects recoup an average of 88% of the investment. In other words, a $10,000 kitchen renovation would add approximately $8,800 to the home's value. Bathroom remodels are the second most valuable, returning 85% on average.