An experienced, reliable real estate appraiser in Maryland

serving Howard County, Prince George's County, Anne Arundel County,
Montgomery County, and the Baltimore-Washington DC metro area

real estate appraisal
      

Old Line Appraisals LLC

A reliable appraiser near you!

       


Frequently Asked Questions:
Are real estate appraisals really necessary?
What services do appraisers provide?
Can I get a copy of an appraisal a lender ordered on my home?
Is there anything I can do to speed up the process?
What constitutes a typical appraisal?
What is a comparable sale?
What is market value?
What is the cost approach?
What is the income approach?
What does highest & best use mean?

Are real estate appraisals really necessary?
Now more than ever a fair and unbiased opinion of value is necessary. It is well known that appraisers were under pressure to "hit numbers" to facilitate mortgage transactions which also played a part in the real estate boom. We are proud at Old Line Appraisals that we were not influenced by lender and home owner pressures. Appraisals continue to be a necessary tool in the mortgage industry to determine not only current values but market trends. More and more attorneys and home owners are finding that they need appraisals to appeal taxes, to pre-price homes for sale, and in some cases to determine net worth for bankruptcies.

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What services do appraisers provide?
Certified real estate appraisers can provide valuations for properties with no limitations on value or loan amount. FHA approved appraisers can also provide valuations for FHA loans. Be certain that your appraiser is certified and not just licensed. Licensing is only the first step in the education and experience of appraising. Jack Sheffrin, owner of Old Line Appraisals, is certified by Maryland, Virginia and the District of Columbia (Washington, DC), and can appraise homes of any size, price or complexity. He is also FHA approved in all of those locations.

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Can I get a copy of an appraisal a lender ordered on my home?
Good news for the home owner is that new federal regulations require lenders to deliver a copy of a real estate appraisal to you three business days before the scheduled closing on the loan. In the past, although federal regulations guaranteed that consumers could request and obtain a copy of the appraisal, lenders often ignored that right. The timing of the loan closing will depend on your receipt of the appraisal in advance. You can waive the three-day rule if you don’t think receiving the appraisal is necessary. Upon completion of an appraisal for a lender, we at Old Line Appraisals LLC send that appraisal directly to the lender. The appraisal company can not provide a copy of the appraisal directly to the home owner in a loan transaction. Of course in any private appraisal order from us, you are the client and we send the appraisal directly to you!

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Is there anything I can do to speed up the process?
We provide a turn around time that meets your needs. Our promise is to meet or exceed your time expectations. There are a number of items you can provide that can help us produce the most accurate and timely report. These may include a survey, a floor plan, HOA or condo fee (if applicable), recent sales that you feel are important, a list of special improvements and features that make your home unique, and any special issues concerning your property. We treat your input as being an important part in the valuation process.

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What constitutes a typical appraisal?
The appraisal process involves data collection and reconciliation of three approaches to value (market, cost, and income approaches). In most appraisals of single or two family dwellings, the market approach best reflects the actions of buyers and sellers. The market or direct sales comparison approach to an estimate of value is a process of comparing market data: prices paid for similar properties, prices asked by owners and offers made by prospective purchasers or tenants willing to buy or lease.
The appraiser attempts to both gauge and reflect the anticipated reaction by a typical purchaser to the subject property. Adjustments are made for major differences between the comparable and the subject property for: location, gross living or buildable area, lot size, condition/effective age, market conditions, degree of remodeling, construction quality and significant amenities (fireplace, jacuzzi, in ground pool, garage, deck, patio, porch, central air conditioning, etc.).

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What is a comparable sale?
A comparable sale is a property similar to the subject property in most respects, is located in a similar (nearby) location and has sold recently at arms length (both seller and purchaser act independently of each other and have no connection or relationship to each other). In most residential appraisals, the selection of comparable sales is the single most important determining factor in establishing value. It is the appraiser's responsibility to adequately research the local real estate market and determine which comparable sales best represent the value characteristics of the subject property.

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What is market value?
Market value or fair market value is the most probable price that a property will sell for in a competitive and open market, assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specific date and the passing of title from seller to buyer under conditions whereby:
  • Buyer and seller are typically motivated
  • Both parties are well informed or well advised
  • There is adequate time for exposure to the open market
  • Payment is made in U.S. dollars
  • Special financing or sales concessions do not affect price.

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What is the cost approach?
The cost approach combines an estimate of land value with an estimate of depreciated reproduction or replacement cost of the improvements. The principle of substitution is the basis of the cost approach, in that no rational person will pay more for a property than the amount for which he can obtain, by purchase of a site and construction of a building, without undue delay, a property of equal desirablity and utility.

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What is the income approach?
The income approach is based on an estimate of net income from the operation of an income producing property and the selection of the property capitalization rate from market indications of similar properties. The principle of anticipation is the basis of the income approach and affirms that value is created by the expectation of benefits to be derived from possession, operation and/or capital gain at resale.

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What does highest & best use mean?
Typically, highest & best use means the use or utilization that provides the most profitable return on investment. It is that use, selected from reasonably probable and legal alternative uses, which is found to be physically possible, appropriately supportable, financially feasible, and will result in the highest possible land value.


Call us today at 301-758-5993.
Appraisals-AT-OldLineAppraisals-DOT-com
We are ready to help you.



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