Welcome! Fisher Appraisals is a Residential and Small Commercial Appraisal firm that covers Middle Tennessee. Our goal is to serve you and your clients with a professional, quality appraisal.
When it comes to buying real estate there are a few added expenses involved. One of those expenses is the appraisal. At a cost of about $400 - $600 (average rates throughout the United States) some question why they are forced to pay for an appraisal. The reality is that no matter what type of property you are buying, you need an appraisal. There are a few simple reasons for this.
First of all, if you are mortgaging the property, your lender will require an appraisal in order to have an unbiased, professional report regarding the property’s value. No financial institution wants to loan you $400,000 for a house that is really worth $250,000.
Second, an appraisal follows along the same lines as the reason you get a home inspection. You don’t want to buy a home only to find out later that it isn’t worth what you paid. Typically, a home is the largest investment most people make in their lifetime. Therefore, it is important to take precautionary steps to protect yourself.
Other reasons for an appraisal:
- It can reduce your tax burden; and, in some cases, the IRS requires an appraisal.
- Can be used as a tool for negotiation (if the assessed value is lower than the asking price, you suddenly have a reason for making a much lower offer).
- Can help you to contest high property taxes.
- Helps when issues arise in the case of a lawsuit if a proper appraisal wasn’t done.
Whenever you take part in a real estate transaction, always hire a professional appraiser who is licensed in your state. The appraiser will inspect the property (inside and outside) and compare it to similar properties in the area. Finally, you will be given a professional, unbiased report of what the property is worth (reports are usually completed within 7 - 10 days).
Even though your real estate agent may have a good idea of what the property is worth; usually, they only look at the cosmetics. Unlike the appraiser’s value which is based on all factors, they rarely see below the surface where problems may really affect the true value.
The simple fact -- if you are thinking about buying a property, the small cost of an appraisal far outweighs the implications of not having one. It is quite possible that the appraisal fee will save you that cost many times over.
What is an Appraisal?
Why do I need an Appraisal?
An appraisal is a written document that shows the fair market value of how much a property is worth. The appraisal gives you useful information about the property, describes what makes it valuable, and shows how it compares to other properties in the neighborhood. An appraisal helps assure you and your lender that the value of the property is based on facts (not the opinion of invested persons - sellers, buyers, lenders, etc.).
An appraisal is a valuation tool used by mortgage lenders to verify a property's worth for prospective financing. The mortgage industry relies upon a qualified, independent real estate appraiser to guide them in their financing decisions. Also, many homeowners, assessor's offices, attorneys, buyers and sellers utilize appraisal for a variety of needs.
1. Buyer and seller are typically motivated.
2. Both parties are well informed or well advised; each acting in what he/she considers his/her own best interest.
3. A reasonable amount of time is allowed for exposure on the open market.
4. Payment is made in terms of cash in U.S. dollars or in terms of comparable financial arrangements.
5. The price represents the normal consideration for the property sold unaffected by special or creative financing; or, sales concessions granted by anyone associated with the sale.
Market Value: This is determined by the following:
PMI Removal
Private Mortgage Insurance (PMI) is the supplemental insurance that many lenders require when the amount being loaned is more than 80% of the value of the home (Loan-To-Value or LTV). This additional payment is often folded into the monthly mortgage payment and is quickly forgotten. After a rise in values and/or payment to principal goes below this 80% level, PMI is no longer required. The United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the LTV ratio conditions have been met. At this time, an appraisal is required to determine the property's value. The cost of an appraisal is soon recovered in just a few months of not paying the PMI.
Challenging the tax assessment has become a necessity in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the Internet for support; but, in reality, they have no real basis for their claims. If you find yourself in this situation, a real estate appraiser can provide the following:
1. Accurate answers to the question of value.
2. Instead of paying for a full appraisal to save a few hundred dollars off your tax bill, often an appraiser can do a limited appraisal for less (with the same conclusions and integrity).
An appraisal from a qualified appraiser would be a step in the right direction in any dispute with your local tax assessor.
Property Tax Assessments
Estate Planning
Often it is difficult to think of the various steps that must be taken to resolve any outstanding monies of the deceased. An appraisal is required to establish fair market values of any real estate properties in the estate for tax filings and any presentation to multiple heirs. Therefore, an appraisal is a necessity to properly dispose the estate.
Divorce
An appraisal by a qualified, independent, professional third party is often required by state law to settle the divorce. This ensures that both parties involved receive a fair and impartial value.
Types of Appraisals Offered
Single-Family Residence FHA and Conventional
Multi-family (2-4 Units) Exterior
Condos / Townhomes Review
Manufactured Homes PUD (Planned Unit Development)
REO (foreclosure) Land / Farms
Small Commercial Waterfront / Lake Properties
