What is a Real Estate Appraisal?

Why have an Appraisal?

Appraisals are generally used once the buyer selects the house, applies for the mortgage. Banks want to make sure that the value matches the agreed sales price. That is not the only use of an appraisal. We use appraisals for those difficult homes that are hard to price or to assist sellers understand what their home is really worth. You see, I can list your home for any price. The deal breaker will be the appraisal. If the home doesn’t appraise, your sale will fall apart very quickly. Banks avoid risk, they will shift it to the buyer. The only way to get the home closed is have the buyer put the difference down.

Yes Western New York is one of the 25 strongest Real Estate Markets and there are homes that are selling with multiple offers. But have you asked yourself why? It is the value that those homes present. It means that the sellers priced the home correctly and buyers were willing to act on the house at that time.

Read Also: Is your Buffalo Realtor® telling you what you need to hear or what you want to hear?

What is an Appraisal?

To protect the interest of their investors, the buyer’s mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold.

Appraisals are generally used at the time of contract by the buyer’s lender. But there are times that a Seller may benefit from an appraisal in setting a listing price. Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

Too often sellers believe that it is what the buyer and they that control the sales price. And that is true if the buyer is paying cash, however if there is a loan, the lender’s appraisal will impact the sale.

Things taken into consideration for the value of the WNY home are:

  • Square footage

  • Amenities

  • The condition of the home

  • Renovations and home improvements add value to the home

  • Defects such as needed repairs or code violations decrease the property’s value

Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

What is the difference between market value and appraised value?

The appraised value of a house is a certified appraiser’s opinion of the worth of a home at a given point in time.

Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a Real Estate Broker or Agent.

Read also: National Association of Realtors® Appraisal Resource Page

How does one become an Appraiser

Appraisers are licensed in the state of New York and are required to go through continuing education. Like home inspectors it is a good idea for you to select your Appraiser before you find a home if you will be selecting the appraiser.

Read Also: Check Appraiser’s New York State License

Interview Questions to ask your appraiser

So if you decide to get an appraisal before you list your home for sale, you will select your appraiser. Here are some questions that you may want to ask before you hire an appraiser:

  • Are you licensed in NY State? What continuing education have you taken?
  • What professional associations do you belong to?
  • How much will your appraisal cost me?
  • How will you handle items which may be outside your area of expertise?
  • What will my Appraisal look like?
  • What constitutes a typical appraisal?
  • What rules must appraisers follow?
  • How long will it take for me to receive my appraisal?
  • What qualified you to appraise my property?

Read Also: Uniform Residential Appraisal Form

Western New York Appraisal Services

Here is a list of several Western New York Appraisers. Make sure you ask friends and family for additional recommendations if you are selecting an appraiser. If you are getting a mortgage, your mortgage company will select the appraiser.

  • William Kushman – Kushman Appraisal Service, Inc 408 Richmond Avenue, Buffalo (716)632-0008
  • Gary Ersing – Lawrence Appraisal Services 4449 North Millgrove Road, Akron (716)759-1288 1569 Ridge Road, Lewiston (716)754-0036
  • Michael James – Michael K. James, Appraiser 6646 Crosby Road, Lockport (716)434-2265
  • Artur Tyski – On Time Appraisal Services 883 Borden Road, Cheektowaga (716)903-0971
  • Mike Tomaino – Tomaino Appraisal LLC 237 Bewley Building, Lockport NY (716) 478-0234
  • Gerald Pirritano – Allstate Appraisal, Inc P.O. Box 464, Hamburg (716)312-0103
  • Eugene Barill – Barill Appraisal Services 29 School Street, Buffalo (716)882-4748
  • Lois Gerace – Bob Harris Realty 6 Ellicott Avenue, Batavia (585)343-8366
  • Carol Harvey – C.D. Harvey Appraisals 3395 Baseline Road, Grand Island (716)773-3687
  • Mark Deangelis – DeAngelis Appraisal Service 8 Jenny Lane, Lancaster (716)440-2314
  • Linda Krysztofowicz – Hamptonbrook Appraisals101 Hitchcock Drive, Depew (716)684-7157
  • David Zale – I-Con Appraisal Services Inc. 1621 Billington Road, East Aurora (716)687-1196
  • Dale Kadish – Independent Appraisal Services3407 Delaware Avenue Suite 257, Kenmore (716)871-9495
  • John Brearley – JD Brearley Consultants, LLC 3629 Center Lane, Hamburg (716)912-5154

Thinking of selling your Erie County home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

What about one of these homes?

All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
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About Colleen Kulikowski, Associate Real Estate Broker (716) 650-0051

Colleen Kulikowski is an Associate Real Estate Broker with J. Philip Real Estate specializing in Western New York residential homes who doesn’t follow trends; she blazes new trails and is able to recognize industry trends and implement them to her client’s best interest. Colleen has created a unique following with one of the top local internet positions in the country generating thousands of leads for her team. Real Estate is a second career for Kulikowski who’s first career was in Information Technology and Data Warehousing working for such companies as Radio City Music Hall, Nabisco Foods and as a consultant in the Financial and Insurance industries. A strong background in technology and management provides her with keen analytical and sharp negotiating skills.

Comment

  • Maine Waterfront Real Estate

    January 6, 2009 at 3:34 am

    Nice article here regarding appraisal. I can definitely make use of this concepts and lists you have specified on my current venture. Thanks.

  • Teresa

    June 26, 2009 at 5:05 am

    Real estate plays a big role when buying or selling properties. Necessary to use the services of specialized appraisers. This will help not only to effectively invest their money but also to get a mortgage with the bank.

  • Heather Grahm

    February 4, 2012 at 11:18 pm

    Remarkable post about Home Appraisals! Thank you for sharing it!

  • Amy Barlow

    February 7, 2012 at 6:58 am

    This was very informative. I never knew there was so much that went into it!

  • Fred J.

    February 11, 2012 at 2:39 pm

    I have read some excellent stuff here.

Comments are now closed for this article.