Palm Beach Florida Appraisal Information from
The Palm Beach Real Estate Pros at
Lanosa Realty

What is an appraisal?

An appraisal is simply an opinion of value. The level of accuracy of an appraisal depends on the skill and impartiality of the appraiser, the thoroughness of the inspection and research, and the amount and quality of market data available. Appraisers in palm beach florida estimate real estate value, business value, and personal property value, and also offer consulting services in these areas.

The most common type of appraisal is the real estate appraisal. Almost all lenders require this when you purchase or refinance a home. Other types of appraisals focus on personal property such as musical instruments, antiques, art, equipment, and even stamp and coin collections.

Another type of appraisal, business appraisals, estimate the value by analyzing ledgers, equipment, inventory, accounts receivable and intangibles such as good will. Often Certified Public Accountants will specialize in this area.

If you're thinking about selling your home, knowing what it's worth is an important first step take before you begin the selling process.

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Are appraisers required to be licensed?

In the aftermath of the $500 billion savings and loan fiasco in 1989, a bill was passed by Congress requiring all states to set up appraiser licensing programs. The intent was to attempt to prevent fraudulent and inflated loans which led to the biggest taxpayer bailout in history. The state of California started licensing appraisers in November, 1992 and all other states had similar programs in place by the mid 90s.

Licensed appraisers are required to adhere to the USPAP (Uniform Standards of Professional Appraisal Practice), a strict set of professional and ethical guidelines developed by a non-profit organization called the Appraisal Foundation. In order to become licensed, an appraiser must take a series of classes, demonstrate experience and competence, pass an examination and take continuing education courses.

Currently, only a few states require that all appraisals are performed by licensed appraisers. The majority of states only require that licensed appraisers perform federally-related transactions, which include real estate loans from federally-insured lenders.

After an appraiser becomes licensed they increase their liability for all of their appraisal work and become subject to penalties, fines and even prison terms for violations. By becoming licensed, an appraiser has demonstrated a commitment to ethical and professional standards, continuing their education, and to abide by all applicable state laws and regulations.

Should I hire only a licensed appraiser?

The advantage of hiring a licensed appraiser is that they will generally produce a more accurate, thorough and better documented appraisal than an unlicensed person would. However, you are expected to pay for their expertise, time, and liability exposure.

The majority of real estate brokers and agents are not licensed appraisers, but often can provide accurate estimates of value for little or no cost. If you're considering selling your home, most real estate agents will at no cost conduct a CMA or comparative market analysis. Naturally, they're hoping you'll list your house with them if you do decide to sell. Make sure that you ask them to estimate the most likely selling price and length of marketing in addition to their suggested listing price. Be cautious of inflated appraisals designed to get you to list your home with a particular agent. This is a very unethical real estate practice. Some real estate brokers and agents provide valuations for estate purposes at no or little cost. Once again, they are hoping that you'll choose to work with them if you decide to sell your home.

Lanosa Realty specializing in Palm Beach Homes, Palm Beach Condos & Luxury Country Clubs in Palm Beach Florida.