Hiring a Licensed Home Appraiser

REQUEST FOR OFFICIAL PROPERTY APPRAISAL

Part of the home buying process may include requesting an official appraisal to help place an appropriate value on the property you are considering purchasing. The property appraisal will be done by a licensed appraiser in your area.

If you are borrowing money from a lender to purchase residential real estate, your lender may require you to order and pay for a home appraisal before your lender will agree to lend you the money needed to purchase the property.

If your lender requires you to order and pay for an appraisal on the property you’re considering buying, don’t be alarmed, as this is standard procedure in most states.

KEEP THEM HONEST

In 1989, Congress passed a bill requiring all states to start a real estate appraiser licensing program. The basis for passing the law was to help eliminate and prevent fraudulent and inflated property appraisal reports, which have an immediate effect on real estate prices. It has been written that the housing bubble was helped along by inflated property appraisals.

However, the bill has not been without its critics. Some in the industry have complained that a licensing program will not eliminate fraud and will only increase the costs associated with property appraisals. There are arguments on both sides of this issue.

THE BOTTOM LINE

If you are borrowing money to finance the purchase of a residential property, your lender will likely require an official appraisal of the property you are trying to purchase, and this appraisal will need to be done by a licensed professional.

Licensed residential property appraisers are now required to adhere to a set of ethical and professional guidelines developed by the Appraisal Foundation.