Appraisers and Assessors of Real Estate
For years, I've been saving money to buy my dream home, the one my wife, my kids, and I have always imagined. But I'm afraid, honestly, of being scammed the way a friend of mine was not long ago. My close friend told me he recently bought a house in an upscale neighborhood, and shortly after moving in with his family, they noticed a strange smell coming from the basement. They assumed it was just mold or dampness, but the smell kept getting worse, until they finally discovered there was a problem with the basement's foundation that was causing water to leak in. My friend told me he hadn't used a real estate appraiser when he wanted to buy that house, and that's what left him exposed to being scammed and paying a large sum of money for a house with serious damage. So he advised me to look for a real estate appraisal expert to help me inspect the house I intend to buy, uncover any damage around it, and find out its rightful market value, so I don't get scammed the way he did. Real estate — whether a house, an apartment, a plot of land, a farm, a factory, a business, or anything similar — can be worth hundreds of thousands of dollars, and often even millions. That's why buying or selling it isn't something done randomly; it requires experts and specialists capable of determining its rightful monetary value based on a number of considerations, such as location, age, size, condition, and other factors that play a key role in valuing real estate. The experts responsible for appraising real estate owned by companies or individuals are known as "real estate appraisers." Their job involves conducting site visits to properties, inspecting them thoroughly, studying their various features, and determining their rightful monetary value based on the market they're in. In the next section, we'll talk in more detail about the nature of the "real estate appraiser" profession.
Meet the Writer: Waleed Abo Omiraa
What You'll Actually Do
The core tasks and responsibilities that fill a typical day.
- Compute final estimation of property values, taking into account such factors as depreciation, replacement costs, value comparisons of similar properties, and income potential.
- Prepare written reports that estimate property values, outline methods by which the estimations were made, and meet appraisal standards.
- Inspect new construction and major improvements to existing structures to determine values.
- Collect and analyze relevant data to identify real estate market trends.
- Inspect properties, considering factors such as market value, location, and building or replacement costs to determine appraisal value.
- Review information about transfers of property to ensure its accuracy, checking basic information on buyers, sellers, and sales prices and making corrections as necessary.
- Conduct regular reviews of property within jurisdictions to determine changes in property due to construction or demolition.
- Examine income records and operating costs of income properties.
- Evaluate land and neighborhoods where properties are situated, considering locations and trends or impending changes that could influence future values.
- Maintain familiarity with aspects of local real estate markets.
- Search public records for transactions such as sales, leases, and assessments.
- Check building codes and zoning bylaws to determine any effects on the properties being appraised.
- Verify legal descriptions of properties by comparing them to county records.
- Interview persons familiar with properties and immediate surroundings, such as contractors, home owners, and realtors, to obtain pertinent information.
- Photograph interiors and exteriors of properties to assist in estimating property value, substantiate findings, and complete appraisal reports.
- Obtain county land values and sales information about nearby properties to aid in establishment of property values.
- Examine the type and location of nearby services, such as shopping centers, schools, parks, and other neighborhood features, to evaluate their impact on property values.
- Estimate building replacement costs, using building valuation manuals and professional cost estimators.
- Draw land diagrams to be used in appraisal reports to support findings.
- Testify in court as to the value of a piece of real estate property.
- Analyze trends in sales prices, construction costs, and rents, to assess property values or determine the accuracy of assessments.