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4 Mistakes to Avoid During Property Appraisal

East Coast Appraisal Service • July 7, 2022

A property appraisal is essential in the real estate industry. It aids in determining the property's market value, ensuring the buyer can acquire it at a fair price. This blog will discuss specific errors that may impact the valuation process and which should be avoided during property appraisal.

1. Fabricating the Property's Information

Do not provide false information to sway the appraisal's outcome. Some people falsify their property's information to increase its market value. However, the appraiser may discover the falsification, thus affecting the negotiations.

For example, some property owners provide fraudulent documents showing their property sits on arable land. Remember, the soil type often influences land value depending on its intended purpose.

Similarly, property owners may misrepresent the value of the fixtures in the house.

Suppose a property owner claims all the door and window handles are gold coated and provides fraudulent receipts of the purchases and installations. Such a claim will likely drive the final value of the property high. However, such claims will taint your credibility should the appraiser establish them as false.

For instance, it may be challenging to negotiate a loan with your lender if your property is the security. Falsifying information contravenes the principle of utmost good faith when disclosing facts relevant to the appraisal.

2. Misinterpreting the Appraisal Process

Another mistake people make is misinterpreting the appraisal process. Some people assume that the valuation process takes several hours to complete. However, depending on your property's size, it may take several days. Property inspection is the first part of the process, but the appraiser must collect other information, such as tax records and MLS listings.

Furthermore, they must investigate the provided information to ascertain its accuracy. Thus, you should not hire another appraiser to fast-track the process. It will cost you more money, and you may receive the same results.

Additionally, understanding the appraisal process is imperative because you will ascertain the procedure was conducted diligently. Usually, most property appraisers update their clients on the process, including completion timelines. They can also explain how they appraise different items on the property. Thus, trust your appraiser to undertake the process with utmost professionalism.

3. Withholding Valuable Information

Some owners do not falsify information but rather withhold it to avoid lowering their properties' value. Remember, every appraiser has an appraisal checklist that guides them during the valuation process. The index provides information the client wants about your property.

Withholding information may lengthen the process because the appraiser must review the requisite documents to inform the valuation. For example, some people often fail to disclose they have defaulted on land rates and property taxes for several years. Whereas such offenses may not lower your property's value, they might reduce the amount you receive with the balance used to settle the land rates and fines.

4. Asking the Appraiser to Violate the USPAP Regulations

The USPAP regulations govern all appraisers. These are rules the appraisers must follow to ensure the valuation is fair. Moreover, the regulations foster standardized appraisal reports; the results are reproducible and can be validated.

Licensed appraisers also have an ethical requirement to evaluate property objectively. Appraisers deemed to have contravened the USPAP regulations risk having their licenses revoked. Thus, one should not ask the appraiser to breach the USPAP laws to gain an advantage.

Additionally, do not bribe the appraiser as an incentive to fabricate the report. The appraiser may bring charges against you, resulting in fines or jail time. It is also likely that the buyer or loaner will terminate the agreement upon suspecting USPAP violations.

Avoid mistakes that could jeopardize an appraisal or hurt your credibility. One such way is to work with professional real estate appraisers. Clients living in New York may contact East Coast Appraisal Service for reliable appraisals. We guarantee professionalism and compliance with USPAP regulations.

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