What does a Real Estate Appraiser really do for ME?

An Appraiser protects your interest in your biggest assest and understands the local market trends! He is a person with a service to offer the community where he lives and cares about. There is so much controversy over how the housing market is failing I thought it would be good to bring some professional insight into the mix. The governement’s view point of housing lacks the knowledge of how the free market really works- and because now FEAR has controlled the buyers/ sellers in the market ,the competive edge of the market has changed- exactly like the stock market. A great point to remember, (when trying to make money) when eveyone runs away – you STAY. Now is a good time to buy, it is just conviencing the average buyer with money and good credit. This housing market however, is not going to turn around anytime soon. The govenment policies will have to change to really make a positive impact on sales. We will continue to improve slowly at best, otherwise flat and that means house prices will remain the same.
Now to explain WHY an appraiser is an important PERSON in the mix.
We are professionals (MAI, SRA, designated appraisers)that often study market trends nationally, understand and relate to values in time(estate properties), can review markets in particular stigmatized neighborhoods through documentations, and have specific collected data that most normal individuals can’t afford to use or have. For instance, how problems with Zillow affect your property; it can’t compare YOUR views, YOUR particular property assests, it can only clump information that is gathered on the computer and average that information together to get an average- therefore often it is severly incorrect. If banks use these number you won’t ever get a loan, some real estate agents use something called a CMA Comparative market analysis- this too has its faults. Real Estate agents look at the property from a SALES point of view , not a value- Two entirely different ways to understand property- often it is only about making the sale, being your FRIEND, working the area, and so on. Remember it is thier job and if they don’t make a sale, they don’t eat.. Appraisers have no interest in what the price of the property is only value. They care what it will sell for-in a specific time frame. So if an appraiser from Phoenix( out of the Tucson area ) comes into to appraise your home they only know to compare Phoenix prices, zillow or CMAs the lowest values…..they only have access to computer statistics, BAD news for you the seller! They really have no interest, they are salaried employes for a management company- they just do thier job, from a form. They are often from out of the area!
This is a big problem in the housing market now- many unqualified appraisers are coming through management companies (because they are cheap and ordered through an online management company from banks, they have minimum educations, qualifications and only do houses because the government gives them a format form. You get no extra choices for views, custom, neighborhood accommodations, and so on. If this continues we might as well all live in track homes because that is where the value is going. We all will have equal living arrangements. Ask your banking institution for an MAI or ask “Does all the money I pay go directly to the appraiser?” You will be shocked out of the $350.00 you pay the bank keeps most of it and gets the cheapest guy to simply write a report. Repeat, I said “write a report” not do an appraisal of your property.That IS not good for you or looking out for your interests. Be aware, be a wise consumer, protect your valuable assest, pay attention to governement rules and how they affect your assests. These are difficult times for homeowners and if mortage tax breaks go away we all are going to take another hit. Hang in there we are half way through 2011 and maybe the end of 2012 will be better! Realistically it looks like 2013 .