Appraisal reports are important documents for every real estate transaction. They are important because they help to protect you and help you get the best deal. In fact, an appraisal report can greatly affect the selling price of a house. Therefore, it’s in everyone’s best interest to know how to write one.
There are four types of appraisal report types, namely, restricted, limited, open, and closed. Each one has its own set of appraisal reporting requirements. For example, limited reports are only available when the transaction is closed. Limited reports are usually available during the bidding process, and sometimes they are available at the closing. If you have any questions about the nature of your limited report, your real estate agent should be able to fill you on those matters.
Open appraisals are available for all local sales and generally take longer to complete than restricted appraisals. Open reports provide more information to the seller and usually include more detailed descriptions of the property being appraised. However, they usually cost more than restricted reports. Open reports may also be required by some locales, so you should check with your local county or city for details.
Limited appraisals are typically used for limited situations. For example, it would be inappropriate to use limited appraisals for a residential community in a rural area because those communities don’t typically go through residential development. Likewise, a restricted appraisal for a commercial building in a downtown area wouldn’t be a good idea. As a matter of fact, there are some localities in which it is not required to get the limited report. For example, a commercial building that is being appraised for insurance purposes must be evaluated on the basis of what it is worth to the insurance company. Other localities require that appraisal reports cover only items that are actually in the building.
Limited Appraisal Report Types – There are four major types of appraisal reports that a real estate agent can prepare for clients. These types are: fixed-rate appraisals, inflation-indexed appraisals, market-based appraisals, and limited report type appraisals. Your real estate agent can help you understand which report type would be right for you and how to prepare for it.
Fixed-rate appraisal reports are prepared by a qualified appraiser based on information the individual provides and normally take longer to complete than other types. However, they are perfect for individuals who need the perfect appraisal report for a loan or sale. The appraiser will have access to all the data and documentation about your personal property. He will use these facts to determine the fair value of your personal property.
Inflation-indexed and market-based reporting requirements differ from state to state. Appraisal reports that fall into one of the above categories are usually provided to homeowners as a part of their Real Estate Settlement but may also be provided to potential buyers in the same property. This is referred to as “market value” or “asset value.” Each of these types of appraisal reports normally takes a day to complete. Appraisal reports that fall into more than one state’s category of reporting requirements usually take longer to complete than the other types. This is because all states require certain information to be submitted when the property is appraised.
Homeowners may need to provide additional information, such as demographic information about the area where the real property is located and any other details that the appraiser may deem necessary for the fair assessment. Appraisers may also request additional information from the homeowner to ensure that the appraisal presents an accurate picture of the home’s fair market value. In order to be prepared for this step, homeowners should keep all documents related to the purchase of the real property. Appraisal reports sample descriptions of these additional items may be found on the website for the National Appraisal Society. However, if additional information is needed for your specific situation, contacting your local real estate agent or attorney would be beneficial.