FAQ

Q: Why are real estate appraisals so important?
A: Because much of an individuals’ or corporation’s equity lies in real estate, it is essential that the real value of a property is understood. Appraisers ensure that buyers do not overpay for property, and that lenders do not overlend.

Q: What services do real estate appraisers offer?
A: Real estate appraisal services vary by appraisal company. White Birch Real Estate offers a vast array of residential real estate services including counseling, consulting, feasibility studies, market analysis, and assessment review.

Q: What is market value?
A: Market value is the probable price that a piece of property should bring in an open market.

Q: How long will an appraisal take?
A: The physical inspection of a property can take as little as 20 minutes to as much as several hours. The length of the appraisal is dependent upon the property itself.

How Does an Appraiser Determine Value

1. The appraiser first conducts a physical inspection of the property, and then researches the real estate assessment information and property field card. This provides the property size, ownership history, and information regarding the dwelling.
2. The appraiser then researches the local real estate market in order to find comparable properties. Sales can be as far back as 12 months, but 3-6 months is the most accurate. Characteristics include lot size, style, room count, condition, and amenities.
3. The appraiser then analyzes the subject property and comparable properties by analyzing all of the components. The differences between comparable sales and subjects are adjusted appropriately.

What is PMI?

PMI is private mortgage insurance that protects the lender against loss if the borrower defaults on their loan. However, according to a 1998 Federal law, lenders are required to drop your PMI once you have 20% equity in your home.

How can PMI be removed?

In order to drop PMI, you may need an appraisal of your home by a state certified appraiser to determine the amount of equity in your home. To learn more about dropping your PMI, contact White Birch Real Estate today!