Hello, this is Chris Elmerick, the owner of Elmerick Appraisals. We specialize in residential real estate appraisals in the beautiful region of San Luis Obispo, California. Throughout my years in this profession, I’ve come across a plethora of questions from homeowners, sellers, buyers, and real estate professionals. Today, I’m here to address the most common appraisal questions that people ask. So let’s dive in!

1. What is a residential real estate appraisal?

A residential real estate appraisal is a professional, unbiased assessment of a property's value. It considers several factors, including the home's condition, size, location, and comparable sales in the neighborhood. The resulting appraisal report offers an informed estimate of the property’s current market value.

2. Why would I need an appraisal?

There are several reasons why you might need an appraisal, including:

Securing a mortgage: Lenders require appraisals to determine the value of a home before granting a loan.

• Refinancing: If you're looking to refinance your mortgage, the bank will often want a new appraisal.

• Estate planning: To divide assets fairly among heirs or beneficiaries.

• Property tax assessments: To dispute a tax assessment or confirm its accuracy.

• Selling a home: To determine an appropriate listing price.

3. How is an appraisal different from a home inspection?

While both are vital parts of the home-buying process, they serve different purposes. An appraisal provides an estimate of the home's market value, while a home inspection examines the property's condition, identifying potential problems like structural issues or outdated systems.

4. What does an appraiser look for?

I consider various factors when assessing a property, including:

• External and internal condition of the property

• Size of the lot and the home

• Number of bedrooms and bathrooms

• Location and recent comparable sales in the area

• Unique or special features of the home

5. How long does an appraisal take?

Typically, the onsite inspection might take anywhere from 30 minutes to a few hours, depending on the size and complexity of the property. However, the full appraisal process, which includes research and report writing, often takes several days.

6. How often do appraisals come in low, and what can be done if this happens?

Low appraisals are not common, but they can occur, especially in a rapidly changing market. If an appraisal comes in low, there are a few steps you can take:

• Review the report for errors.

• Provide additional comps to justify the desired value.

• Request a second appraisal.

• Renegotiate with the buyer.

7. How do local San Luis Obispo factors influence an appraisal?

San Luis Obispo, with its scenic beauty and rich history, offers a unique market. Local factors, such as proximity to popular attractions, schools, and the general desirability of specific neighborhoods, can all influence an appraisal. Keeping a pulse on the local market nuances is crucial for accurate evaluations.

8. Can I do anything to influence the outcome of an appraisal?

While you cannot directly influence the appraiser's opinion of value, ensuring your home is in its best condition can make a positive impression. Clean, declutter, and complete minor repairs before the appraiser’s visit. Providing a list of recent upgrades and improvements can also be helpful.

9. How long is an appraisal valid?

Typically, an appraisal is considered valid for about six months. However, in volatile markets or rapidly changing neighborhoods, its shelf life can be shorter.

10. How are appraisers regulated, and what qualifications do they have?

Appraisers are regulated at both the federal and state levels. In California, we have the Bureau of Real Estate Appraisers (BREA) that oversees the licensing and certification of appraisers. To become a licensed appraiser, one must complete required education, gain experience under a supervisory appraiser, and pass a state-administered examination.

Conclusion

Whether you’re buying, selling, or refinancing in San Luis Obispo, understanding the appraisal process is essential. Here at Elmerick Appraisals, we pride ourselves on providing thorough, accurate, and transparent residential appraisal services. If you have further questions or need an appraisal, don’t hesitate to reach out. We’re here to help!