An appraisal is an opinion of the "estimated market value" of a particular property. Much confusion exists about appraisals and this guide is designed to eliminate some of this confusion. Recently through regulations and legislation significant changes have resulted in the appraisal profession. Until recently, states did not require appraisers to be licensed. In 1989, the Financial Institutions Reform. Recovery and Enforcement Act (FIRREA) addressed uniform standards for appraisers and lenders. Subsequently, Uniform Standards and Professional Appraisal Practice (USPAP) were adopted for use nationally by all lending institutions that are federally insured. Additionally, the states have adopted the same standards. Appraisers now are required to submit to numerous courses, acquired to substantial experience and pass a very rigorous exam before a license will be issued. You can rest assured that your appraisal has been performed in a manner consistent with the newest regulations and by an appraiser who has met even stricter standards than the government - ours!

- Liz Skidmore Certified General Appraiser



1. Can I order my own appraisal?
Not if you are going to use it for a mortgage loan. FIRREA requires that a representatives of the lender order the appraisal. The appraisal report is addressed in the person or entity who orders it and the accountability for the report extends to that entity only. The lender will not be able to use an appraisal that they have not ordered.

2. Can I obtain a copy of my appraisal?
As an appraisal company, we can only give a copy of an appraisal to the party or entity that ordered it performed.

3. If I paid for the appraisal and the property that was appraised belongs to me - why can't I have a copy?
Under the rules of USPAP we as a company are under obligation to the party requesting the work. There is a client relationship which does not permit discussing the appraisal or making and distributing copies. The lender can give a copy to you at ther discretion.

4. If I disagree with the value or content of the appraisal report can I argue with the appraiser?
All appraisal reports performed by Robison & Skidmore Professional Appraisal Services are performed in accordance with professional standards and in a professional manner by one of our qualified appraisers. All appraisals are co-signed by the owner. Any inquiries should be channeled through the lender.

5. What about the valuation - What is "Fair Market Value"?
The appraised value is the appraiser's opinion of the value based on the most probable price estimated in terms ofmoney which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

6. Can there be more than one value?
Yes. For example, the cost to replace the structure can exceed the fair market value. Such a value may be the insured value. There are a number of other values that may be sought but the most common appraisals for estimated fair market value.

7. What is the normal completion time for an appraisal?
The written report is the end result of a complex procedure. Often this involves research at the Court House, Planning and Zoning, or other public offices, as well as and in-depth study of data regarding the property and other data in the appraiser's files. Not withstanding unusual circumstances regarding additional research, this process normally takes several working days.

8. How long is my appraisal valid?
This answer will vary depending upon the policies of various lenders. Generally speaking six months would be the maximum time that an appraisal would be considered valid.

9. Is there ever an instance when an appraisal value is less than a previous appraisal?
Yes. An appraisal by definition is based on current market conditions. USPAP dictates that we must use only the most recent information available. Economic forces such as supply, demand, interest rates and general economic outlook will all impact the current market. These forces may affect value in either a positive or negative manner.

10. What issues are addressed in an appraisal?
Each lender has specific guidelines which they ask the appraiser to follow. Some of the items that may be addressed in the report include:

a. Flood Plain - if property is located in a H.U.D. identified flood plain, flood insurance may be required by the lender.
b. Underground storage tanks - the presence of petroleum storage tanks is of concern to the lender.
c. Asbestos - deteriorated or flaking asbestos, typically found on heating systems, may pose a health risk.
d. Radon - the lender may want to know if elevated radon levels have been found in the area.
e. Lead Paint - dwellings which may contain lead-based paint are another health concern.
f. Estimated remaining life of the property - the lender needs to know whether or not the property can be expected to last beyond the loan term.
g. Deferred maintenance items - repairs needed are of concern to the lender because, left unchecked, they can lead to further deterioration and thus be a detriment to the value of the property.
h. Sales history - the lender wants to know whether or not the property has recently been offered for sale or has transferred. The details of the transfer, price, terms, etc. need to be analyzed by the appraiser.
i. Contract of sale - if the property is presently under contract to sell, the terms and conditions of that contract, particularly any seller concessions, need to be evaluated.
j. Comparable photos - floor plan sketches and location map are items required by some lenders. These items provide a more complete picture of the subject property and its market area. Uses for Appraisal Reports:

   1. Property Purchase Loans
   2. Refinance Loans
   3. Estate Valuation
   4. Divorce
   5. Partiton
   6. Condemnation
   7. Sale