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All appraisals must conform to the guidelines detailed in the Uniform Standards Of Professional Appraisal Practice, better known as USPAP. Click here for more History of USPAP

The majority of appraisals are an analysis, and opinion, of current market value. However, true market value can be difficult to ascertain when prices are volatile and properties are varied.

To determine current market value, an appraiser will compare the price of your home with that of at least three comparable homes that are in the area

and have sold within the past 90 days, he will look at sales as far back as 1 year if necessary, then adjust for differences in the properties. The appraiser will physically measure, or determine through public records and/or inspection, the gross living area of the home being appraised. He may also take photographs to include in the report with floor plans and a site map.

Potential Problems

Inexperience and lack of training can result in appraisal problems. Appraisers are certified by the individual states under federal guidelines, which require appraisers to pass a written examination and have 75, or more, hours of continuing education and 2,000, or more, hours of direct experience through an apprenticeship.

All appraisers must abide by professional and ethical standards set by USPAP.

You should check the appraiser's license to verify it is currently in force.

What to do if your house should appraise for less than the sale amount:

Most inexperienced real estate sales people believe appraisal problems boil down to two reasons:

The appraiser has inadequate information about the property.

The appraiser is inexperienced or lacks adequate training.

However, after many years as, " Review Appraisers" , our senior staff has found the realities of the market place do not support either of these assumptions.

In most cases, if the home does not appraise for the sale amount, it was over priced.

There are also occasions when the market has taken a down turn and sales people have not adjusted seller's expectations. Appraisal reports usually reflect down turns before sales people have adjusted.

The most expedient action, on the seller's part, is to identify the addresses of similar sold homes, equally located which sold for as much or more than his price in the past year. This can be accomplished by a trip to the local Assessors office and a review of Property Transfer Affidavits. Obtain copies of the Transfer Affidavits which represent properties in the same neighborhood as the appraised property. After accomplishing this task, ask the Assessor to provide copies of the field sheet record on each property. The field sheet will contain detailed information on each property represented by an affidavit. Compare the square foot area, lot size, exterior wall type, date of construction, number of bedrooms, number of bathrooms, basement and garage size to the appraised property. If these areas of comparison are similar a written request for, "Reconsideration of Value" may be submitted to the Lender. Keep in mind that if the sale dates on the Property Transfer Affidavits are older than the dates of sale on the properties used in the Appraiser's original report your request for, "Reconsideration of Value" will, in most cases, be summarily denied. Only higher priced similar homes with more recent dates of sale will be considered superior to those submitted in the Appraisers original report.

After identifying comparable, more recent, higher priced, sold property the seller or his Agent may submit, to the Lender in writing, a "Request for Reconsideration of Value". The Lender will forward the information to the Appraiser requesting further review. After careful review and analysis, the Appraiser may increase his or her final estimate of value.