AMV’s & Online Appraisals – Why You Need a Professional Appraiser

Why do you need a professional appraisal? 

There are vital pieces of information that you won’t learn from an automated or non-appraiser valuation.
Automated Valuation Models (AVMs) and “free online home values” leave out certain information when determining the value of properties. Lenders, brokers, and homeowners alike need to know what information the computer isn’t getting for them.

1) What type of building or property is really there?
Our appraisers drive by each location to check and make sure that the building is what it claims to be. Is it really a small brewery with a kitchen and a spacious
seating patio? Or is it an old, renovated furniture store made to look like a bar?  The computer won’t be able to determine that.
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2) What features are going to affect the value of the property? What affect will they have?
For example, a computer returns an estimated value of $280,000. What this valuation may not include are the surrounding buildings/areas that affect the value of the property. The school district can have an impact the home’s value. Other factors like a garbage dump down the block or a noisy fire station might affect it as well. A professional appraiser will consider all factors when evaluating the property.
 3) When was the property last assessed?
In many states, assessments may only be required every three years. Many AVMs and free online services rely on public assessment records that could prove to be years old. In some states, an assessed value may not increase beyond a certain percentage, even if sales activity on the property indicates appreciation. When you use a professional appraiser you won’t risk a lower value than reality like you would with an AVM or free online service.
 4) What makes the other properties comparable to yours?
A computer will compare your property with similar ones in the surrounding area. Some things a computer will not see :
a) different school district, b) busy streets, c) if the building is prone to damage from natural disasters, d) if it was sold underphoto by Drew Coffman, StockSnap_RBWJK7LNY2 duress, such as in a divorce, e) or if the property is not at arm’s length, such as to a family member. A professional appraiser understands all the adjustments that need to be made for an accurate valuation.
5) How is the market doing?
A computer could over-value a property, which can be frustrating for lenders. Automated valuations use data from any recent, nearby sales. If the local housing market was at its peak when the sales were completed, the computer will assume that the trend is going up, even if a professional appraiser recognizes the overall neighborhood is experiencing a downturn.StockSnap_RM676MH2KP, residential appraisal, professional appraisal, appraisal help, appraisal info, acme appraisals north, traverse city, michigan
 6) Are there existing conflicts?
With a professional appraiser you won’t run into any surprises down the road like you might with an online valuation. When it comes to your home, you don’t want an over-estimated value. This could cause the property to list at an inflated cost. Free values are often sent out to real estate agents in your area. The agents use this service by looking at the high end of what they believe the property is worth because this makes you more likely to sign a listing agreement. An appraiser provides an unbiased and fair value assessment.
 7) What makes the appraiser qualified? 
Acme Appraisals North, you can trust that you will receive a highly qualified and ethical approach with each report.  Our appraisers assess with good judgment and are not biased to any third party. Unlike with a professional appraiser, when you get a free online valuation you don’t know the qualifications of whoever is behind the value. Even if you did know, the computer couldn’t compare it to an appraiser’s valuation. When relying on an automated valuation, you’re missing out an appraiser’s education, experience and expertise.