Real estate is appraised a staff appraiser for lending purposes. These financial experts assess a property’s worth so that a bank can determine how much money to lend on a mortgage or home equity loan. To work as an appraiser in many areas, you must first obtain a license. Regulations vary, so it’s a good idea to look at job postings to see what qualifications employers are looking for when applying to be a staff appraiser.
A bank may request an appraisal of the property before approving a loan. Rather than contracting out this function to a third party, large banks keep a staff to perform it. A staff appraiser may specialize in certain types of property, such as land, single-family homes, or commercial real estate. This specialization can help employers improve the quality and accuracy of their appraisals.
The staff appraiser gathers property documentation to look for common issues such as a cloud on the title that could cause delays in the sale. Appraisers also conduct a physical inspection of the property and, if necessary, hire an inspector to conduct a more thorough examination. They can start developing a value estimate noting the location, physical condition, and characteristics. Comparable homes may also need to be consulted in order to determine their current market value.
Comps, as they’re called, show how much similar properties have sold for in recent months. They enable a staff appraiser to conduct market research and base an appraisal on what people are actually paying rather than an arbitrary valuation. Homes should be in similar neighborhoods and have similar conditions, lot sizes, and features. For example, a three bedroom home in good condition in a bad neighborhood is not comparable to a two bedroom home in good condition in a good neighborhood.
A staff appraiser must be familiar with local real estate and the community. Newcomers to an area may not know where the boundaries between different communities are drawn, or they may be unfamiliar with structural issues that are common in that area. Staff appraisers can keep up with the market reading real estate magazines, tracking sale declarations at a title recorder’s office, and using other resources. If their evaluations are incorrect, the ramifications for their employers could be severe.