F.A.Q.
Appraisal Methods & Process
Appraisals: When, Why, Who, Where & What
Why Choose us?
At First Choice, we aim to deliver high-quality appraisal reports, based on true market research and utilizing top-of-the-industry metrics and valuation tools, geared to develop most accurate market value for your property. We adhere to highest level of professional ethics, confidentiality, un-biased and objective analysis, and focus on each assignment with utmost thoroughness and due diligence tailored to your purpose, all delivered in a timely fashion. Most importantly we have over 20+ years experience in Ventura & LA counties performing accurate appraisals on various types of properties from simple tract SFR structures to high-end custom built new construction dwellings.
When do I need one?
A client might need an appraisal for a variety of reasons, especially relation to current market value for a home. For instance, when someone plans to sell their home but feels uncertain about their realtor's listed asking price or isn't ready to engage a realtor just yet, they may seek an independent valuation from a licensed and/or certified appraiser. This independent evaluation helps homeowners understand their property's true market value, ensuring they set a competitive price when the time comes to sell. Additionally, appraisals are often necessary for refinancing a mortgage, estate planning, or resolving disputes, further highlighting the importance of having a professional appraisal in these situations.
What is does an appraisal contain?
An appraisal typically contains essential information about both the property being evaluated and its surrounding neighborhood and market area. The report includes details such as the proximity to supporting services like schools, shopping centers, and public transportation, which can influence property value. Additionally, the appraisal outlines current market conditions, providing insight into trends and comparable property sales. Specific property attributes are also documented, including lot size, actual gross living area, number of bedrooms and bathrooms, year built, the overall condition of the property and any recent upgrades as well custom features that enhance it's value. Furthermore, a sketch of the property and floorplan is often included to give a visual representation, helping to clarify its layout and features for prospective buyers or lenders.
Who authorizes appraisers?
In California, to become a Licensed Residential Appraiser (AL) in order to perform appraisals with transaction values below $1 Million, individuals must meet specific educational requirements set forth by the California Burea of Real Estate Appraisers (BREA). Prospective appraisers must possess a college degree or complete a series of college-level courses. Additionally, they are required to complete a total of 200 hours of appraisal education, which includes a critical 15-hour course on the Uniform Standards of Professional Appraisal Practice (USPAP) as well as training in California state and federal laws related to real estate appraisal. Furthermore, in order to obtain a Certified Residential Appraiser certification (AR) an additional 2,000 hours of residential valuation experience is required in order to appraise any property over $1Million. The authorization and regulation of appraisers in California ensure that they maintain the highest standards of professionalism and competency within the real estate industry.
Where do you get info to determine market value?
We subscribe to local Multiple Listing Service (MLS) and Public Records database, as well as Departement of Building & Safety, to gather essential data for determining property values. The MLS is particularly valuable as it offers comprehensive details about properties, interior photos for most comparables, and other pertinent info such as terms of sales and/or any consessions. Additionally, often times if needed, we seek information from a Title Company, which can provide insights into the property's history, ownership, and any liens or claims that may affect its value. Together, these resources help us create most accurate appraisals that reflect the true market value of your home.
OTHER F.A.Q.s
How long does an appraisal take?
OUR PROCESS: We have a simple streamlined service: First, you contact us via email and phone on 'Contact Us' page, in order to determine your property and appraisal needs and set a scope of work and intended purpose. Second, we provide a free tailored quote based on complexity of the assignment and schedule an inspection within 1-3 days. Third, our certified appraiser conducts a physical appraisal walk-thru inspection, measuring the property, documenting condition and overall upgrades and quality of constrcution, photographing key features, amenities, and all improvement factors that contribute to overall market value. Typically, most appointments take from 35-50 minute depending on size of property. Fourth, we research recent comparable sales in your neighborhood, analyze market trends, make adjustments for differences, and calculate the property's true market value. Finally, we deliver a comprehensive 30-40 page USPAP-compliant report within 3-4 business days (faster turn-around times available if needed). The report includes detailed property description, comparable sales analysis, market data, professional photographs, detailed sketch and floor plans, and other supportive market trends and analysis, leading to our reconciled certified opinion of market value conclusion.
Who is the client or owns an appraisal?
Generally, the person who engages or requests the appraiser to perform an appraisal for a given purpose is the client or 'owns' the report and all confidentiality it attached to it. Note that in some situations, the 'client' may or may not be the entity that actual pays for it. The named client in a report could be a homeowner, heir, trustee, tenant, or a bank and/or financial institution. Also, note in order to send a copy to another party, ore disclose any confidential information and assignment results, the appraiser is required to get authorization from the client and/or owner of the report.
What is difference between an assessment and an appraisal?
Appraisals determine a real estate property's market value (typically based on a stated effective date which can be a current date or date in the past) for lenders most often during a sale or refinance. Other uses for an appraisal might be needed during estate issues, divorce, tax or date-of-death purposes. While assessments calculate the property's value for local government tax purposes only. Assessments happen periodically (annually or every few years) and often use standardized formulas, drive-by evaluations, and historical data rather than current market fluctuations. Typically, appraised values are higher than assessed values because appraisals reflect current market conditions and take into account specific home improvements and amenities, whereas assessments may lag behind market trends and apply standardized ratios.
How is an appraisal different than available online virtual estimates?
Online estimates from platforms like Zillow (R), Redfin (R), or Realtor.com are generated using algorithms that analyze data trends, property characteristics, and market conditions. However, these estimates are not appraisals and should never be relied upon for legal or financial decisions. In fact, for Zillow (R) right below there suggested home values (which is based on average value), they display the broad range your home falls in, and have a disclaimer stating:
"...This is the Zestimate®, Zillow's estimated market value for a home. It’s computed using a proprietary formula, as well as public and user-submitted data. Updating your home facts can help make your Zestimate more accurate. A Zestimate is not an official appraisal, but is a starting point in determining a home's value...'
First Choice Appraisals offers certified appraisals performed by licensed professionals who conduct thorough assessments of a property's value, taking into account factors such as location, condition, and recent comparable sales. Certified Appraisers provide appraisals with comprehensive and accurate representation of a property's worth, ensuring that you are equipped with the reliable information needed for significant financial transactions.
How is payment made?
We accept Zelle (R) our most preferred method, as well as Money Order & Check, and all major credit cards (payable at appointment time). Note payment in full is requested before delivery of any appraisal report.