Frequently Asked Questions
Estimating home value. How can I find out what my house is worth?
Getting a Comparative Market Analysis (CMA) from a real estate agent.
Getting an appraisal from a professional appraiser. As a homeowner, you may have reason to question the value of your home on various occasions. These may include planning to buy or sell a home, appealing your property tax assessment, seeking to eliminate payment of private mortgage insurance or under taking a major home renovation project.
If you’re planning to sell your home, setting an appropriate listing price can help to speed the sale. An appraiser, using market data, arrives at an opinion of market value that can help you decide on a fair listing price. Similarly, when you’re shopping for a new home, a professional appraisal can tell you if you’re paying market value.Transfer of ownership typically involves a mortgage, and an appraisal usually is required before a home loan is approved. Lending in stitutions may require an appraisal of property that will be used as security for a mortgage, and this opinion of value plays a key role in mortgage application approval and the amount of down payment required.
Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms.
The most common consumer refinancing is for a home mortgage.
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity. Home equity loans are most commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-tovalue and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end. Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.There is a specific difference between a home equity loan and a Home Equity Line of Credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate.
FSBO is the process of marketing, buying and selling of real estate without the representation of a real estate broker.
When homeowners decide to sell their home without a real estate agent, they enter the world of the FSBO sellers. If a seller markets a
home as a FSBO, and a buyer who is not working with an agent wants to buy this home, the seller pays no commission because no
realestate agents are involved. If a buyer who is represented by an agent is interested in a FSBO home, that buyer's agent may request
the owner to pay him or her a commission or finder's fee for bringing the buyer.
Real estate appraisals are often needed by relocation firms that assist employers in the transfer of their employees. Sometimes, therelocation firm offers to purchase an employee’s home if the employee is unable to sell the home during a specified time period. An appraiser is called in to estimate the market value of the home; this estimate of value helps the relocation firm decide how much to pay for the property. The appraiser may be selected by the relocation firm, the employer or by the homeowner-employee, depending on the relocation firm’s policy.
New homeowners are frequently required to obtain private mortgage insurance, but as a result of legislation passed by Congress in 1998, homeowners can cancel this coverage when their loan-to-value ratio reaches 80 percent. To take advantage of this option a home owner generally must have a good payment history and satisfy the holder of the mortgage that the 4 value of the property has not declined below its original value. An appraiser can develop an opinion of the current value of the home, which will assist the home owner in deciding whether or not to ask the lender to drop mortgage insurance.
Field appraisal review services?
Appraisal reviews "should determine whether the appraisal or evaluation is appropriate for the transaction, the risk of the transaction, and whether the process by which the collateral valuation is obtained ensures independence and quality," the Fed says.They "should also indicate whether the appraisal or evaluation report is consistent with the engagement letter, which sets forth the scope of the appraisal assignment."The Fed also notes that "some banks supplement routine reviews with post-funding evaluations of appraisal quality for some of their higher-risk or greater-value transactions as a control to assist in detecting valuation problems."
In addition to conforming our work to the forms and guidelines of our review clients, there are four Fannie Mae forms that are generally used for review services, and we can prepare an appraisal review on any of them. They include an appraisal "desk" review, a "field" review, a "short" form and a "narrative" form. Here at CMS Property Services, Inc., we are experienced in all types of appraisal reviews, review procedures and the responsibilities of review appraisers.
How to prepare for an appraisal?
For homeowners, a real estate appraisal is the linchpin to buying or selling their home. It allows the property transactions to occur
among the buyer, seller, real estate agent and mortgage lender. Before an Appraiser arrives, there are a few things you should know.
By law, an appraiser must be state licensed to perform appraisals prepared for federally related transactions. Also by law, you are
entitled to receive a copy of the completed appraisal report from your lender.
To facilitate the appraisal process, it's beneficial to have these documents ready for the appraiser:
• A plot plan or survey of the house and land (if readily available)
• Information on the latest purchase of the property in the last three years
• Written property agreements, such as a maintenance agreement for a shared driveway
• List of personal property to be sold with the home
• Title policy that describes encroachments or easements
• Most recent real estate tax bill and or legal description of the property
• Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
• Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost.
• A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending".
• Information on "Homeowners Associations" or condominium covenants and fees.
• A list of "Proposed" improvements if the property is to be appraised "As Complete".
Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, but you should be
available to answer questions about your property and be willing to point out any home improvements.
Here are some other suggestions:
• Accessibility: Make sure that all areas of the home are accessible.
• Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter.
• Maintenance: Repair minor things like leaky faucets, missing door handles and trim.
• Pets: Please secure pets, so they do not scratch the appraiser's vehicle or jump on the appraiser.
•Access: Please inform the appraiser if getting to the house may be difficult.
How long is an appraisal good for?
It is good for 6 months as is and up to 1 year with an update from the appraiser.
Settling an estate is an important and sometimes stressful job. As an executor you have been entrusted to carry out the wishes of the
deceased as swiftly and exactly as possible. You can count on us to act quickly and with sensitivity to the feelings of everyone involved.
Attorneys and Accountants rely on our values when calculating real property values for estates, divorces, or other disputes requiring a
value being placed on real property. We understand their needs and are used to dealing with all parties involved. We provide appraisal
reports that meet the requirements of the courts and various agencies.
Settling an estate usually requires an appraisal to establish Fair Market Value for the residential property involved. Often, the date of
death differs from the date the appraisal is requested. We are familiar with the procedures and requirements necessary to perform a
retroactive appraisal with an effective date and Fair Market Value estimate matching the date of death. The ethics provision within the
Uniform Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.
All too often, people do not fully appreciate the need to have a detailed real estate appraisal prepared in support of the numbers being
used in documents filed with revenue authorities.Opinions of value used in documents filed with the revenue authorities should be
supported by a detailed report as to how the appraiser arrived at his conclusions. Such a report will certainly demonstrate to the
authorities that the numbers used are well founded and substantiated.
Having a professional appraisal gives the executor solid facts and figures to work with in meeting IRS and state agency requirements. It assures peace of mind to everyone concerned because we are there to stand behind the appraisal if it is challenged.
Finalizing a divorce involves many decisions, including "Who gets the house"? There are generally two options regarding the house
sell the house and the proceeds get divided, or one party can "buy out" the other. In either case, one or both parties should order an
appraisal of the residence. Divorce appraisals require a well supported, professional appraisal that is defensible in court. When you
order an appraisal from us, you are assured that you will get the best in professional service, courtesy, and the highest quality appraisal.
We also know how to handle the sensitive needs of a divorce situation.
Attorneys and Accountants rely on our values when calculating real property values for estates, divorces, or other disputes requiring a
value being placed on real property. We understand their needs and are used to dealing with all parties involved. We provide appraisal
reports that meet the requirements of the courts and various agencies.
Your needs oftentimes include an appraisal to establish fair market value for the residential real estate involved. Often the divorce date
differs from the date you order the appraisal. We are familiar with the procedures and requirements necessary to perform a retroactive
appraisal with an effective date and Fair Market Value estimate matching the date of divorce. The ethics provision within the Uniform
Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.
An expert witness or professional witness is a witness, who by virtue of education, training, skill, or experience, is believed to have knowledge in a particular subject beyond that of the average person, sufficient that others may officially (and legally) rely upon the witness's specialized (scientific, technical or other) opinion about an evidence or fact issue within the scope of their expertise, referred to as the expert opinion, as an assistance to the fact-finder.