ROI Homes Services LLC is always ready to talk to you about any concerns you might have about appraisals in Orlando and Seminole County. Contact ROI Homes Services LLC today to learn how we can help solve your valuation problems.


Describe an appraisal?

The process of writing an appraisal report deals with an investigation which forms an opinion of value. The real estate appraiser will use a number of "approaches," typically three, to come to the estimation of market value. One of the methods is the Cost Approach - which is how much it would cost to replace the improvements, minus physical deterioration and other factors, plus the land value. Another of the approaches is the Sales Comparison Approach - which involves discovering a comparison to other similar nearby properties which have recently sold. Being the most popular approach, the Sales Comparison Approach is considered the most accurate and best indicator of market value for a home. The third approach is the Income Approach, which is the most important method in appraising income-producing properties - it deals with estimating what an investor would pay based on the income generated by the property.


Describe what an appraiser does?

An appraiser produces a fair and credible opinion of market value, often in the context of a real estate sale. Appraisers exhibit their expert investigation in appraisal reports.


What would cause me to need a real estate appraisal?

There are many reasons to order an appraisal for the usual reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

  • If you are applying for a loan.
  • If you would like to lower your property tax obligations.
  • To build a case for a homeowner's equity and remove PMI.
  • To challenge improperly assessed property taxes.
  • If you need to take care of an estate.
  • To offer you a negotiating tool when purchasing real estate.
  • To figure out a likely sales price when selling your home.
  • To defend your rights if your property is being taken by means of eminent domain in a condemnation case.
  • Because a government agency such as the IRS requires it.
  • If you ever find yourself in a civil case.

If you need more information regarding the appraisal process, please click here.

Is an appraisal the same as a home inspection?

Appraisers do not do complete residential property inspections and are not home inspectors. An inspection is a third-party investigation of the available structure and electrical and mechanical systems of a house, from the top to the bottom. Usually, a home inspection report will evaluate the amenities and the requirements of the house: air conditioning (weather permitting), electrical systems, the condition of the heating system, the plumbing; then the structural capacity of the home such as the attic, accessible insulation, walls, floors, ceilings, windows, then the foundation, basement and other visible structures.


What is the difference between an appraisal and a comparative market analysis (CMA)?

Simply put, it's like comparing Shakespeare to reality TV. The CMA relies on indistinct market trends. The appraisal relies on similar valid comparable sales. Location and construction values are also important in an appraisal. A CMA delivers a "ballpark figure." Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value. Who's creating the report is actually the biggest difference between a CMA and an appraisal. Real estate agents, who may not have a complete understanding of valuation methods or the entire market, write CMA's. A certified, Florida licensed professional who made a career on valuing homes in and around Seminole County creates the appraisal. Likewise, the agent has a vested interest in the property's selling price - their commission - whereas the appraiser is bound by a code of ethics to accept a flat sum for assignments, regardless of their outcome.


What can I expect to see in my appraisal report?

Every appraisal must indicate a believable value opinion and must identify the following:

  • Who engaged the appraiser and whose purposes the appraisal is to serve.
  • The intended use of the appraisal.
  • The purpose of the appraisal.
  • Precisely what "value" attribute is being reported and what that value means.
  • The effective date of the appraiser's opinions and conclusions.
  • Pertinent property characteristics, including location, physical attributes, legal attributes, economic factors, the property rights in question, and non-real estate items included in the appraisal, such as personal property, permanent equipment installations, and even intangible items.
  • Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
  • Division of interest, such as fractional interest, physical segment, and partial holding.
  • The scope of work used while working up the appraisal.

Upon completion of the appraisal, how can I have a guarantee that the value conclusion is veritable?

In communicating an appraisal report, each appraiser must see to it that each of the items below is covered:

  • The appraisal contained a suitable analysis of the information.
  • That major errors of omission or commission were not committed individually or collectively.
  • That appraisal services were rendered in a careful and conscientious manner.
  • That a trustworthy, substantiated appraisal report was conferred.

To become a state licensed appraiser, there are extensive education requirements as well as practical experience that must be logged. In addition, appraisers must abide by a meticulous industry code of ethics and comply with national standards of practice for real estate appraisal. The guidelines for working up an appraisal and documenting its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP). Regulations regarding licensing and certification of Real Estate Appraisers are different from state to state. In general, licensing and certification are commonly associated with many hours of coursework, tests and real-world experience. Once an appraiser is licensed, he/she must then complete continuing education courses in order to keep the license current.

Who do appraisers work for?

Typically, appraisers are hired by lenders to render a value opinion on a house involved in a loan transaction. Also, appraisers provide opinions in litigation cases, tax matters, and investment decisions.


Where does ROI Homes Services LLC get the information used to estimate values in Seminole County or other areas?

Compiling data is one of the primary activities of an appraiser. Data can be classified as either Specific or General. Specific data is taken from the property itself; Location, condition, amenities, size and other specific data are noted by the appraiser during an inspection. General data is received from many places. Local Multiple Listing Services (MLS) provide information on recently sold homes that might be used as comparables. Tax records and other public documents reveal actual sales prices in a market. Flood zone data is available from FEMA data outlets, such as a la mode's InterFlood servers. And last but not least, the appraiser gathers general data from his or her past experience in doing assignments for other properties in the same market. 


My mortgage statement has an item on it for PMI? Can I get rid of that?

PMI is the common abbreviation for Private Mortgage Insurance. PMI covers the lender in the event a borrower defaults on the loan and the value of the home is less than what is owed on the loan. You can have your PMI dropped once you've achieved 20% equity in your home through appreciation and principal payments.

Has your home value appreciated since you first purchased? Contact ROI Homes Services LLC today at (407) 720-9288 to see if you can save money by removing your Private Mortgage Insurance premium.


Why should I hire a licensed appraiser?

An appraisal is a valuable tool whenever the value of your home is relevant to a financial decision. For those selling a home, you'll want to figure out a price that gets you the most profit but also ensures you don't have to wait too long for a buyer to show up; an appraisal can help with that. If you're buying, it makes sure you don't overpay. If you're engaged in an estate settlement or divorce, it ensures that property is divided fairly. A home is often the single, largest financial asset anybody owns. Without knowing its real value, wise financial decisions are impossible.

Does the appraiser need anything from me in advance?

We begin with an inspection of the property. What this entails is the appraiser, after setting up an appointment, personally going to the home - recording the layout of the rooms, taking photos and documenting the general condition of its amenities. Is there anything you can do to help? Yes, there is! First, be sure the appraiser has easy access to the exterior of the house. Trim any bushes and relocate any items that would get in our way while we measure the structure. Indoors, make sure we can get to items like furnaces and water heaters. The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:

  • Information on the latest purchase of the property in the last three years.
  • List of personal property to be sold with the home.
  • Title policy that lists encroachments or easements.
  • Any inspection reports, or other recent reports of termites, EIFS (synthetic stucco) wall systems, septic systems and your well.
  • A list of "proposed" improvements if the property is to be appraised "as complete".

Define "Market Value"?

In real estate appraising, Market Value (as opposed to Fair Market Value) is commonly defined as:

"The most probable price (in terms of money) 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 and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."


Who actually owns the appraisal report?

For mortgage transactions, the lender orders the appraisal, either directly or through a third party. Even though it's the buyer that eventually pays for the report, the lender is the intended user. The buyer is certainly entitled to a copy of the appraisal - it's usually bundled with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender. It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage. In these scenarios, the appraiser may state how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example. If not noted otherwise, the homeowner can use the appraisal for any purpose.


I want to get more for my house. Where should I spend money renovating?

The added value of a particular amenity truly depends on the local market. For example, adding a central air conditioner into a home in the South may add significant value, while putting one in a home near the Pacific Northwest might not have much impact. No matter where you go, however, renovating a kitchen is almost always a safe move. One recent study revealed that putting $20,000 into a kitchen remodel would add about $17,500 to the value of the home - or about an 88% return on investment.Bathrooms are right up there with kitchens, yielding 85%.>On the contrary, an improvement that may not increase your value would be painting just for the sake of redecorating.