What is the purpose of a real estate appraisal?
An impartial third party appraisal is needed to make sure a buyer is not paying
too much for a property and to make sure a lender does not extend too much
credit to the buyer. The appraiser gathers details about the property and
comparable properties and analyzes those details in order to provide the
estimated value of the property.
How much will an appraisal cost?
The cost of the appraisal will vary by the extent of the report. Please see the
Services & Fees page by clicking on the navigation button. The fees do not
change often, but are subject to change at any time without notification.
If a home inspection (walk-through) is a required part of the appraisal, how
long will it take?
Generally, the walk-through of your home will take no more than 10 to 20
minutes. Additional time may be spent outside your home, analyzing your
property and any structures on your property. Please ask about the length of
time needed if you feel there are special circumstances with your home.
Note: The term inspection does not constitute a home inspection.
When an appraiser views the home, it is for informational gathering purposes.
What happens after the walk-through?
After the walk-through, the appraiser studies homes in your area, which have
recently sold and are considered similar to your home. After all this information
is gathered, the appraiser can begin the appraisal report in his/her office. This
is a lengthy process, taking hours to complete. The report is reviewed to make
sure there are no inaccuracies and then is forwarded to the client.
What is included in the analysis and in the report?
The appraisal process is an orderly and concise method of arriving at an
estimate of value. The six major steps of this process include: definition of the
problem, preliminary survey and appraisal plan, data collection and analysis,
application of the three approaches to value, reconciliation of value
indications, and final estimate of defined value. This process assists the
appraiser in reaching a sound conclusion. The major phase of this process
involves the application of the three approaches to value: the Market Data
Approach, the Cost Approach, and the Income Approach. The three approaches
are reconciled and the most applicable approach, in the opinion of the
appraiser, is selected for the final estimate of value. In most residential
appraisals, especially those of single family dwellings, the direct sales
comparison or market approach best reflects the actions of buyers and sellers
and is the most convincing and defendable approach to value.
How can I get a copy of the appraisal that a lender ordered on my home?
If your appraisal was requested by a lender, then the lender is the client and
owns that appraisal, regardless of who pays for it. You should submit a written
request to the lender, asking for a copy to be sent to you. Do not contact the
appraiser for the copy, as it cannot be released without the written consent of
the client.
To what standards and rules must appraisers adhere?
Appraisal Standards Board (ASB)
The ASB sets forth the rules for developing an appraisal and reporting its
results. Additionally, it promotes the use, understanding, and enforcement of
the Uniform Standards of Professional Appraisal Practice (USPAP). FIRREA
requires that real estate appraisals, used in conjunction with federally-related
transactions, be performed in accordance with USPAP. More than 80,000 state
certified and licensed appraisers are currently required to adhere to USPAP.
USPAP contains the recognized standards of practice for real estate, personal
property, and business appraisal. The authority of USPAP extends beyond
FIRREA. Since 1992, the Office of Management and Budget (OMB) has required
federal land acquisition and direct lending agencies to use appraisals in
conformance with USPAP.
What is PMI or Private Mortgage Insurance?
Private Mortgage Insurance
The Homeowners Protection Act of 1998 (Public Law 105-216) was signed into
law on July 29, 1998. The Act provides a statutory framework for canceling or
automatically terminating private mortgage insurance (PMI). PMI is an
insurance policy that protects the lender from losses when a mortgage with a
low down payment is in default. In general, most PMI requirements in
connection with a residential mortgage transaction entered into after July 29,
1999, will terminate when the mortgage is scheduled to reach 78 percent of the
original value of the property. A mortgagor with a good payment history and
who meets other requirements of the Act may request the cancellation when
the mortgage balance reaches 80 percent of the property’s value. The federal
banking agencies, the NCUA, and the Farm Credit Administration are directed to
enforce these requirements.
An impartial third party appraisal is needed to make sure a buyer is not paying
too much for a property and to make sure a lender does not extend too much
credit to the buyer. The appraiser gathers details about the property and
comparable properties and analyzes those details in order to provide the
estimated value of the property.
How much will an appraisal cost?
The cost of the appraisal will vary by the extent of the report. Please see the
Services & Fees page by clicking on the navigation button. The fees do not
change often, but are subject to change at any time without notification.
If a home inspection (walk-through) is a required part of the appraisal, how
long will it take?
Generally, the walk-through of your home will take no more than 10 to 20
minutes. Additional time may be spent outside your home, analyzing your
property and any structures on your property. Please ask about the length of
time needed if you feel there are special circumstances with your home.
Note: The term inspection does not constitute a home inspection.
When an appraiser views the home, it is for informational gathering purposes.
What happens after the walk-through?
After the walk-through, the appraiser studies homes in your area, which have
recently sold and are considered similar to your home. After all this information
is gathered, the appraiser can begin the appraisal report in his/her office. This
is a lengthy process, taking hours to complete. The report is reviewed to make
sure there are no inaccuracies and then is forwarded to the client.
What is included in the analysis and in the report?
The appraisal process is an orderly and concise method of arriving at an
estimate of value. The six major steps of this process include: definition of the
problem, preliminary survey and appraisal plan, data collection and analysis,
application of the three approaches to value, reconciliation of value
indications, and final estimate of defined value. This process assists the
appraiser in reaching a sound conclusion. The major phase of this process
involves the application of the three approaches to value: the Market Data
Approach, the Cost Approach, and the Income Approach. The three approaches
are reconciled and the most applicable approach, in the opinion of the
appraiser, is selected for the final estimate of value. In most residential
appraisals, especially those of single family dwellings, the direct sales
comparison or market approach best reflects the actions of buyers and sellers
and is the most convincing and defendable approach to value.
How can I get a copy of the appraisal that a lender ordered on my home?
If your appraisal was requested by a lender, then the lender is the client and
owns that appraisal, regardless of who pays for it. You should submit a written
request to the lender, asking for a copy to be sent to you. Do not contact the
appraiser for the copy, as it cannot be released without the written consent of
the client.
To what standards and rules must appraisers adhere?
Appraisal Standards Board (ASB)
The ASB sets forth the rules for developing an appraisal and reporting its
results. Additionally, it promotes the use, understanding, and enforcement of
the Uniform Standards of Professional Appraisal Practice (USPAP). FIRREA
requires that real estate appraisals, used in conjunction with federally-related
transactions, be performed in accordance with USPAP. More than 80,000 state
certified and licensed appraisers are currently required to adhere to USPAP.
USPAP contains the recognized standards of practice for real estate, personal
property, and business appraisal. The authority of USPAP extends beyond
FIRREA. Since 1992, the Office of Management and Budget (OMB) has required
federal land acquisition and direct lending agencies to use appraisals in
conformance with USPAP.
What is PMI or Private Mortgage Insurance?
Private Mortgage Insurance
The Homeowners Protection Act of 1998 (Public Law 105-216) was signed into
law on July 29, 1998. The Act provides a statutory framework for canceling or
automatically terminating private mortgage insurance (PMI). PMI is an
insurance policy that protects the lender from losses when a mortgage with a
low down payment is in default. In general, most PMI requirements in
connection with a residential mortgage transaction entered into after July 29,
1999, will terminate when the mortgage is scheduled to reach 78 percent of the
original value of the property. A mortgagor with a good payment history and
who meets other requirements of the Act may request the cancellation when
the mortgage balance reaches 80 percent of the property’s value. The federal
banking agencies, the NCUA, and the Farm Credit Administration are directed to
enforce these requirements.
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| Central Texas Appraisals |
| Central Texas Appraisals PO. Box 1694 Belton, TX. 76513-5694 ph: (254) 760-0522 fax: (866) 699-8090 wally@centraltxappraisals.com |