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Question: What is an appraisal?
Answer: A real estate appraisal is an objective opinion of value of a particular parcel of real property given by a professional appraiser. The appraiser must inspect and gather information about the specific property and the surrounding area. A search is then made to locate similar dwellings in the neighborhood that have recently been sold and closed. The appraiser then compares the closed sales to the subject property considering all relevant characteristics of the properties. After review and analysis, the appraiser follows a process that leads to a logical conclusion: the final estimate of value.
Question: Who Or What Is An Appraiser?
Answer:An appraiser is an individual licensed by the state in which the property is located, to provide real estate appraisals in accordance with state and industry guidelines. Appraisers must meet certain educational and experience requirements and must take and pass a state licensing examination. In New Jersey, there are three types of appraisal licenses, Licensed Residential, Certified Residential, and Certified General. The first two licenses allow the appraiser to perform various types of residential appraisals. Appraisers licensed as Certified General are permitted to perform all types of residential and commercial appraisal assignments.
Question: For Whom Does The Appraiser Work?
Answer: The appraiser works for the client, the person, or company who contracts with the appraiser to conduct the appraisal. In most cases, this is the lending institution. This can sometimes be confusing in the traditional real estate transaction since the purchaser sometimes indirectly pays for the appraisal through the loan application fees. This does not impact the fact that the appraiser's client is the party that does the hiring, even if someone else pays for the assignment.
Question: How Do You Obtain A Copy Of The Appraisal?
Answer: If you hire the appraiser directly, you are the client and are contractually obligated to have the appraisal completed and delivered to you. If a lender ordered the appraisal and you paid for the appraisal, then you are entitled to a copy of the appraisal from the lender. A copy of the appraisal may be obtained by making formal request to the lender. The appraiser is not able to discuss or release the appraisal report with anyone other than the client.
Question: When Is An Appraisal Necessary Or Helpful?
Answer:Real estate appraisals are generally necessary for mortgage loans, divorce cases, settling estates, tax appeals, removal of private mortgage insurance, and many individuals order appraisals prior to selling their homes in order to obtain an unbiased estimate of value.
Question: What Is A Title Search?
Answer:All legal documents pertaining to real estate ownership, liens, judgments, etc. are maintained by the county clerk at the county courthouse. All documents are sent to the county clerk's office for a procedure known as "Recording". Recording is considered to be legal and public notice of a right or a claim. A title search is a name given to a search of public records conducted to determine legal ownership and to locate any mortgage liens or other liens filed against the property or the legal owner. There are various types and levels of title searches, those that are more comprehensive, such as a full 60-year search, require additional research and are more inclusive of additional data. Others, such as a simple property check or a record owner search are substantially less in scope and are, accordingly, less comprehensive. These searches are utilized to quickly determine the current owner and what liens may be outstanding on the property.
Question: Who Needs A Title Search?
Answer: Almost all lenders require title searches when making any type of loan secured by real estate. The purpose is to verify ownership and to determine how much equity exists at the time the loan is made. The equity position is frequently the determining factor in how much the lender is willing to loan to the applicant; this is based on something called the loan-to-value ratio. Homeowners may want to have the title researched on a dwelling to make sure there are no liens or judgments improperly filed or to verify that a paid-off loan has been properly canceled.
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