Infinity Appraisal Group, LLC has answers to "Frequently Asked Questions"
Infinity Appraisal Group, LLC is always willing to elaborate on any questions you might have about appraisals in Miami Dade & Broward Counties. Feel free to contact us today.
(List of questions)The method of producing an appraisal report deals with an evaluation which forms an opinion of value. There are three "common approaches to value" which assists the appraiser come to this opinion or valuation. One of the processes in use is the Cost Approach, which is what it would cost to restore the improvements to the property, less the age and physical deterioration, plus the land value. The Sales Comparison Approach involves searching for comparable properties in close proximity and figuring out the value based on making a comparison of those homes to the home in question. Being the most commonly used approach, the Sales Comparison Approach is considered the most accurate and best indicator of market value for a home. The third approach is the Income Approach, which is of most importance in appraising income producing properties - it involves estimating what an investor would pay based on the money produced by the property.
(List of questions)An appraiser provides a fair and credible determination of market value, to be used in making real estate transactions. Appraisers present their investigation in appraisal reports.
(List of questions)There are many reasons to obtain an appraisal from Infinity Appraisal Group, LLC with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:
To get a loan.
To lower your tax burden.
To show a homeowner has 30% equity and remove Primary Mortgage Insurance.
To fight inflated property taxes.
If you need to take care of an estate.
To offer you an edge when purchasing real estate.
To determine the most probable property value when selling your home.
To protect your rights if your property is being taken by means of eminent domain in a condemnation case.
Government agencies such as the IRS require an appraisal on every home.
It's possible you could be involved in a lawsuit - an appraisal will definitely help.
For a more detailed description of the appraisal process click here.
Home inspectors do not figure out an opinion of value and do not do appraisal reports. The purpose of a home inspection is to evaluate the structure of the property from basement to top. The general house inspector's report will contain an evaluation of the integrity of the property's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.
(List of questions)Simply put, it's apples and oranges. The CMA depends on vague market trends. Appraisals use similar sales which are valid resources. The appraisal report will also include neighborhood and building values. A CMA delivers a "ball park figure." An appraisal delivers a defensible and carefully documented opinion of value.
The credentials of the person creating the report is actually the most significant difference between a CMA and an appraisal. Real estate agents, who may not have a complete understanding of valuation methods or the entire market, generate CMA's. A certified, state licensed professional who made their livelihood on valuing real estate in and around Broward County creates the appraisal. Further, the appraiser is an unbiased party, with no conditional interest in the value of a home, unlike the real estate agent, whose income is tied to the price of the home.
Each report must indicate a credible value opinion and should clearly state the following:
The client and whose purposes the appraisal is to serve.
The intended use of the report.
The reason for the appraisal.
Precisely what "value" attribute is being reported and what that value means.
The effective date of the appraisal.(Sometimes this is in the past or maybe the future for new construction!)
Characteristics of the property that have a bearing on the value, including: location, physical characteristics, legal attributes, economic factors, the real property interest in question, and non-real estate items included in the valuation, such as personal property, permanent equipment installations and even 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.
What was entailed in the process of completing the assignment.
For a more in depth view of what goes into an appraisal report click here: Sample Appraisal Report
(List of questions)In communicating an appraisal report, each appraiser must make sure of the following:
That the information analysis utilized in the appraisal was suitable.
Whether individually or collectively, there were no substantial errors contained in the appraisal, nor any relevant details left out.
That appraisal services were delivered in a careful and cognizant manner.
The final appraisal report was understandable, sound and not easily discredited.
To become a state licensed appraiser, we must fulfill intense education and experience requirements that prepare us to formulate an unbiased opinion. Likewise, appraisers must obey a meticulous industry code of ethics and observe national standards of practice for real estate appraisal. The tenets for carrying out an appraisal and communicating its results are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).
(List of questions)Most of the time, appraisers are employed by mortgage lenders to render a value opinion on a home involved in a loan transaction - to make sure the house is truly adequate collateral for the loan. Attorneys and CPAs also hire appraisers for asset division and estate settlements.
(List of questions)One of the most important activities of an appraiser is to collect property data. Data can be categorized as either Specific or General. Specific data is from the home itself; Location, condition, amenities, size and other specifics are documented by the appraiser while on site.
General data is gathered from a numerous places. Local Multiple Listing Services (MLS) have data on recently sold homes that could be used as comparables. To double-check actual sales prices, we look at tax records and other public documents that are usually online nowadays. Appraisers often have to report when a property is in a flood zone, and that information is retrieved from a FEMA data outlet such as a la mode's InterFlood product.
And last but not least, the appraiser assembles general data from his or her past experience in doing assignments for other properties in the same market.
(List of questions)If you're making some sort of financial decision and the value of your home matters, you'll want an appraisal. If you're selling your home, an appraisal will help you determine the most appropriate price. When buying, you can avoid overpaying by getting an independent appraisal. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. Simply put, a house is often the single, largest financial asset anybody owns. Without knowing its real value, wise financial decisions are impossible.
(List of questions)PMI stands for Private Mortgage Insurance. This supplemental policy protects the lender in case a borrower defaults on the loan and the value of the property is lower than the loan balance. 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.
Has your home value appreciated since you first purchased? Contact Infinity Appraisal Group, LLC today at (954) 450-3680 to see if you can get rid of your Private Mortgage Insurance payment.
(List of questions)We begin with an inspection of the property. During this process, the appraiser 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. Inside, pick up any clutter and make sure we can get to things like furnaces and water heaters. On the outside, trim any landscaping so we can be free to get an accurate measurement of exterior walls.
The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
Any information on the purchase of the property for the last three years.
List of personal property to be sold with the building.
Any "Homeowners Associations" agreements or, if applicable, condo agreements or fees .
Brag sheet that lists major home improvements and upgrades, the amount of their purchase and date of their installation (for example, the addition of Insulation or roof repairs) and permit confirmation (if available).
Most recent real estate tax bill and or legal description of the property.
(List of questions)In real estate appraising, Market Value (as opposed to Fair Market Value) is commonly defined as:
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and 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: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 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."
(List of questions)In most real estate transactions, the appraisal is ordered by the lender. Even though it's the buyer that eventually pays for the report, the lender is the intended user. The buyer is certainly entitled to a copy of the appraisal - it's usually bundled with all the other closing documents - but is not allowed to use the report for any other purpose without permission from the lender.
The exception to this rule is when a home owner engages an appraiser directly. In these scenarios, the appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not noted otherwise, the home owner can do whatever they want with the appraisal.
(List of questions)It really depends on the market. For example, if you're in a neigborhood of small to medium priced homes, a media room may not be something people in that price range want
No matter where you go, however, renovating a kitchen is almost always a safe move. One recent study revealed that putting $20,000 into a kitchen remodel would add about $17,500 to the value of the home - or about an 88% return on investment. Bathrooms weren't far behind, returning 85%. On the contrary, something that may not increase your value would be painting just for the sake of redecorating.
