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FAQ
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-Why do I need a professional
appraisal?
-The state licensed or certified appraiser is trained to render an
unbiased opinion based upon extensive education and experience requirements.
The appraiser must adhere to strict Standards of Professional Practice,
which include a professional code of ethics. If you are the buyer
of real estate, the appraiser protects you from overpaying for a property.
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| If you are the seller, the appraiser
can provide a valuable marketing tool for your sale. If you are a lender,
the appraiser protects you from over lending to buyers. The appraiser can
save you unjust PMI dollars or insure that you are treated fairly in a divorce
settlement. |
-What exactly is PMI and how
can I get rid of it?
- Private Mortgage Insurance (PMI) insures a lender against loss on homes
purchased with a downpayment of less than 20%. Once your equity is 20% of
your appraised value, then the PMI is eliminated and your savings are immediate.
- To rid your mortgage of PMI, you will contact your mortgage lender and
ask for specific instructions for eliminating PMI. All mortgage lenders
require a professional appraisal for this process to prove your home's value
in relation to your equity. |
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-How do I prepare for the appraisal?
-Upon receiving the appraisal request, the appraiser will contact you
for a convenient time and date for the inspection. The appraiser will
come to your home, measure the dwelling from the outside, photograph the
exterior, and perform an interior inspection. An average size dwelling
inspection will take from 20-45 minutes.
-To expedite the process, it is helpful to have the following available
for the appraiser: your survey, recent tax bill, any floor plan rendition
(a sketch from a previous marketing brochure or appraisal), deed restrictions,
and any mandatory homeowner association information. In addition, a list
of recent improvements and cost is important and helpful to the appraiser.
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Why are appraisals so expensive if your
inspection takes less than an hour?
-The home inspection is just a small part of the appraisal process. The
appraiser researches the market before and after the inspection, gathering,
verifying and analyzing market data. The appraiser is required to analyze
three approaches in determining your market value. The Sales Comparison
Analysis is the essence of the appraisal. This is the section that compares
recently closed comparable sales from your specific market area or neighborhood
to your home, adjusting for the variances. The second approach to value
is the Cost Approach. The appraiser determines what your home cost to
build new, determines any depreciation, and ascertains your land value
as though it were vacant. And lastly, the Income Approach determines your
home value based upon market rents, if applicable. After considering all
approaches to value, the appraiser then reconciles the most appropriate
market value or range of values for your property.
What is "Market Value?"
-To simplify a complex definition, "Market Value" is the most probable
price your property would sell for in a competitive and open market under
all conditions requisite to a fair sale. This assumes that the sale is
"at arms length" meaning that the buyer and seller are not related, or
there are no special circumstances or undue stimuli, which would bias
the sale.
Which form should I choose?
-The standard Fannie Mae 1004 (URAR) form is the most extensive single-family
form and is the most widely requested for a conventional or FHA loan by
all lending institutions. The form contains comprehensive information
with addenda necessary for underwriters to make lending decisions. It
is the most costly single-family form.
-The Fannie Mae forms 2055 and 2065 are
very similar to each other and are often referred to as "Limited" or "Drive-By"
appraisals. The appraisals actually require the same amount of data to
be gathered, analyzed and reconciled; however less written reporting is
required. Therefore, the processing time is shorter than for the 1004
and less costly. These forms are especially useful for sellers trying
to price their home for sale, for an estate tax situation, tax assessment
grievance, divorce settlement, helping a buyer to decide how much to pay
for a home, and for PMI removal, when approved by the lender.
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-How much
does an appraisal cost?
-Because there are so many factors to consider for a fee quote, fees
are not standardized. Factors relating to cost are dwelling size,
locale, lot size, architectural complexity, and appropriate appraisal
form.
-Marion Appraisal, LLC has provided a "Request-A-Bid" section to
allow users a form for submitting pertinent information to help us
provide a fee quote within 24 hours. |
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Marion Appraisal, LLC
9911 Coley Drive
Huntersville, NC 28078
704-947-0207 Office
704-948-4569 Fax
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