Like any service, appraisal fees are directly related to the amount of time the appraiser spends in providing the service.

An appraisal for an average home usually costs $350, which is usually paid by the buyer in a mortgage transaction or a homeowner in a non-lender transaction.

The amount of development time may vary from one assignment to another even though the reports for different assignments may look similar. While an appraisal assignment involves both the development and reporting of assignment results, the client sees only the appraisal report.

The duration of a residential appraisal can vary depending on several factors, including the complexity of the property and the availability of necessary information. Generally, a standard residential appraisal can take anywhere from a few days to a couple of weeks. However, more complex properties or unique circumstances may require additional time. It's always best to consult with the appraiser directly to get a more accurate estimate based on your specific situation.

The validity or "good" period of an appraisal depends on various factors such as the lender's requirements and market conditions.

Typically, residential appraisals are considered valid for a period of three to six months.

However, it's important to note that lenders may have their own guidelines and may require a more recent appraisal if the original one becomes outdated or if there have been significant changes in the market or the property itself.

It's advisable to consult with your lender or appraiser to determine the specific validity period for your appraisal in accordance with your circumstances.

An appraisal is an unbiased professional opinion of a home's value on a specific date. An appraiser provides an evaluation that leads to an opinion of value.

There are three "common approaches to value" which assists the appraiser to conclude this opinion or estimate.

The Cost Approach is one of the approaches that appraisers use to find value; it involves figuring out what the improvements would cost without physical depreciation, plus the land value.

Another of process is the Sales Comparison Approach - which involves finding a comparison to other similar nearby properties which have recently sold. The Sales Comparison Approach is normally the most definitive and clearest indicator of value for a house.

The third approach is the Income Approach, which is the best method in appraising income-producing properties - it deals with estimating what an investor would pay based on the capital generated by the property.

If you're making some sort of financial decision and the value of your home is relevant, you'll want to hire a licensed appraiser.

For those selling a home, you'll want to figure out a price that gets you the most profit but also ensures you don't have to wait too long for a buyer to show up; an appraisal can help with that.

If you're buying, it makes sure you don't overpay. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly.

Simply put, a home is often the single, largest financial asset anybody owns. Knowing its true value means you can make the right financial decisions

A Licensed Real Estate Appraiser who is an independent third party will complete the appraisal.

The appraiser has no financial stake in the outcome of the transaction.

An appraiser's fiduciary duty is restricted to those parties who the appraiser knows, based on the scope of work or other things in the framework of the job.

Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect.

For example, the value of a guest house can vary greatly depending on a number of factors such as its size, location, condition, and amenities.

Some other things that can affect the value of a guest house include the local real estate market, the demand for rental properties in the area, and any additional features or benefits the guest house may offer.

To determine the value of a guest house, it is best to consult with a real estate agent or appraiser who has experience valuing properties in the local market.

They can take into account all of the relevant factors and help you understand what a fair price for the guest house might be.

A home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase.

In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to: Evaluate the physical condition: structure, construction, and mechanical systems. Identify items that need to be repaired or replaced. Estimate the remaining useful life of major systems, , structure and finishes

Real Estate Appraisals are different from Home Inspections:

Appraisals are for lenders: home inspections are for buyers. The appraisal only establishes the value of the property for mortgage insurance purposes.

An appraisal is required to:

Estimate the market value of a house.

Make sure that the house meets FHA minimum property standards and requirements.

Make sure that the property is marketable.

FHA Does Not Guarantee the Value or Condition of Your Potential New Home:

If you find problems with your new home after closing, FHA cannot give or lend you money for repairs, and FHA cannot buy the home back from you. That is why it is so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to inspect your potential new home and give you the information you need to make a wise decision.

Be an informed Buyer

It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You may arrange to do so before signing your contract or may do so after signing the contract as long as your contract states that the sale of the home depends on the inspection.

An appraisal starts with a thorough inspection of the property, including its location, number of bedrooms and bathrooms, living areas, etc., to ensure that everything exists and is in good shape.

The appraiser then uses three approaches to determine the property's value: the replacement cost approach, paired sales analysis, and the income approach (for rental properties).

The appraiser then arrives at an estimated market value for the property, which is often used as a guideline for lenders.

The appraisal provides a fair and balanced property value to help make informed real estate decisions.

The answer is easy, appraisers are using Exposure Time to calculate the market value and Real Estate Agents are using Marketing Time to determine the market value.

An appraisal is an opinion of market value as of a certain date, based on Exposure Time.

Exposure Time happens prior to the effective date on the report. For example, the appraiser is using historical data (comps sold within 1-3 months of the appraisal date) to determine a market value as of a specific date.

Exposure Time can be calculated because you typically have data to support it. The assumption is that the property being valued was adequately exposed for sale in an appropriate market and that it was exposed for a specified period of time preceding the effective date of value.

This time period is not fixed but is an estimate made by the appraiser. It is the amount of time it would have taken to sell the property for a price equal to the appraised value.

On the other hand, Real Estate Agents are using Marketing Time to determine what the house could sell for in the future, say 1-3 months from today.

They are not able to determine exactly when in the future, as Marketing Time happens after a certain date.

Marketing Time is somewhat of a guess because it is in the future. It is likely that Exposure Time and Marketing Time will be the same. Though, they may be drastically different. If, for example, there is some major change in your market that has just happened or is anticipated to happen soon.

These terms are not as perfectly symmetrical as they first appear:

Importantly, an estimate of exposure time is an extraordinary assumption upon which a value opinion is predicated, whereas, by definition, opinions of market value (appraisals) may not be based on assumptions about marketing time that occur after the effective date of value.

Most importantly, it’s crucial to understand that Real Estate Agents are advocates, while Appraisers are neutral parties to the transaction.

The first thing to remember is that not all appraisers are created equal and an appraisal is an opinion of value. We all know about opinions, everyone has one.

The second thing to remember is that appraisers are human and can make mistakes. However, unlike an AVM (automated valuation model) Appraisers can change their minds based on additional valid information.

If you find errors or omissions, you can request a recertification of value from your original appraiser.

If the original appraiser will not change their mind based on the additional information, you can always get a second opinion.

Maybe you’re aware of a sale, listing, or pending sale the appraiser missed. Possibly the appraiser failed to note an item or value, or just undervalued an amenity.

For example, I’ve been able to help a client twice when appraisals came in low for homes she was trying to sell. In the most recent transaction, the appraiser adjusted a fireplace of a comparable downwards $5000 which is fine, but they also adjusted that same comparable upwards of only $5000 for not having a remodeled kitchen. I disagreed that the market values a fireplace and a remodeled kitchen the same, did I mention she lives in Palm Desert where the fireplace saw little action?

When an appraisal comes in low, request a copy and read it. You may notice errors or comparable sales which were not used in the appraisal.

I cannot stress this enough, make sure they’re comparable!!! If you notice some errors be polite and state your case as to why the value should be increased.

Ask the appraiser to reconsider the value. In my client’s case, we were able to get the buyers to agree and come up with an additional $5000 out of pocket.

There is no guarantee a second appraiser will come in with a higher value but a different opinion is almost guaranteed. It may be worth a second opinion to save an additional $5000. It also makes sense to hire a Real Estate Agent with a competitive advantage and an understanding of how appraisals work.