does the buyer or seller hire the appraiser
DESCRIPTION
We are real estate agents specializing in High Rise Condos. We help literally hundreds of high rise & loft condominium buyers, sellers, renters and landlords. You can reach us at (480) 510-8755 or visit our website at www.weknowurban.com. Will Daly, Broker We Know Urban Realty, LLC 834 E Claremont Street, No 3 Phoenix, AZ 85014 (480) 510-8755 Email: [email protected] - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/1.jpg)
Does the Buyer or Seller Hire the Appraiser?
![Page 2: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/2.jpg)
People in the market for downtown Phoenix and Scottsdale condos often seek information on getting a real estate appraisal on their potential new home.
![Page 3: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/3.jpg)
As with other property, the fair selling price on condos is determined by a real estate appraisal.
![Page 4: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/4.jpg)
What Is an Appraisal?
![Page 5: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/5.jpg)
An appraisal is intended to be an unbiased estimate of a fair price for a property.
![Page 6: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/6.jpg)
First, the appraiser visually inspects the property, noting such features as location, condition, number of bedrooms and bathrooms, extras like a garage or pool.
![Page 7: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/7.jpg)
Measurements and photos are taken and the physical report completed.
![Page 8: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/8.jpg)
A less complete approach called a drive by appraisal involves the appraiser driving by the property and then researching real estate records; it is not accepted by most lenders.
![Page 9: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/9.jpg)
After a physical assessment is done, the appraiser determines value by using sales comparisons, cost approach or both.
![Page 10: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/10.jpg)
The sales approach takes into consideration recent sales of similar homes in the area using standard formulas to account for such differences as size variances, fireplaces,mudrooms or garages.
![Page 11: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/11.jpg)
The cost approach, on the other hand, uses local building costs and labor rates to figure out how much the house would cost to build. The most common type of appraisal is the Uniform Residential Appraisal Report (URAR), which combines the sales and cost approaches.
![Page 12: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/12.jpg)
What is a Real Estate Appraiser?
![Page 13: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/13.jpg)
A real estate appraiser is a licensed contractor usually hired by the lender.
![Page 14: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/14.jpg)
Knowledgeable about real estate, an appraising professional knows how to evaluate properties on the basis of neighborhood, housing trends, physical condition and a host of other variables that go into determining the current valueof a home.
![Page 15: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/15.jpg)
To get a fair appraisal, it’s best to hire a professional who works with a number of lenders so that there is no conflict of interest.
![Page 16: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/16.jpg)
What Is the Purpose of an Appraisal?
![Page 17: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/17.jpg)
Mortgage lenders generally require an appraisal because they will only loan an amount of money in line with the property’s appraised value.
![Page 18: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/18.jpg)
With the high price of homes and condos in today’s marketplace, it’s important to ensure the loan is paying for a home worth its selling price.
![Page 19: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/19.jpg)
If the appraisal comes in below the amount of the sale, either the buyer must put more money down or the contract must be renegotiated to account for the lower value.
![Page 20: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/20.jpg)
Who Pays for the Appraisal?
![Page 21: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/21.jpg)
Because the lender is requiring the appraisal, it’s usually the buyer who pays the bill.
![Page 22: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/22.jpg)
In most sales, the lender orders the appraisal, the buyer pays for it and then the lender takes a close look at the appraisal itself before approving the mortgage.
![Page 23: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/23.jpg)
While drive by appraisals cost less than complete property appraisals, they are often not accepted by mortgage lenders.
![Page 24: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/24.jpg)
If the home doesn’t appraise for the agreed upon selling price, the buyer may ask for a second appraisal from a different appraiser.
![Page 25: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/25.jpg)
Appraisals are usually paid for at closing, andyou should be sure to keep a copy for yourown records.
![Page 26: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/26.jpg)
Exceptions to the Rule
![Page 27: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/27.jpg)
In a few cases, sellers may be expected to payfor the appraisal.
![Page 28: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/28.jpg)
For instance, in FHA-insured mortgages, the seller or mortgage lender is expected to foot the bill for a second appraisal.
![Page 29: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/29.jpg)
Because the real estate business is built on endless negotiations, a bank or other lender can allow a seller to pay for the appraisal.
![Page 30: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/30.jpg)
If you are looking for a condo to buy in Tempe, Scottsdale or Phoenix, We Know Urban Realty will help you find the perfect place.
![Page 31: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/31.jpg)
Their realtors are experts when it comes tourban living.
![Page 33: Does the Buyer or Seller Hire the Appraiser](https://reader031.vdocuments.net/reader031/viewer/2022032803/568129c4550346895d8c9f82/html5/thumbnails/33.jpg)
Will Daly, BrokerWe Know Urban Realty, LLC834 E Claremont Street, No 3Phoenix, AZ 85014(480) 510-8755Email: [email protected]