Cape Appraisals Blog

As the media hypes up the condition of Real Estate Markets all over the country, one of the largest concerns of mortgage professionals, homeowner's and borrowers is what to do if they intiate the process to refinance and the appraised value of their home is not enough to proceed. 

The first reaction from those involved in the transaction is that they have "wasted" money for an appraisal they can not use.  However, this is far from true.  Not only was a professional service completed and delivered, but there are alternative uses for the appraisal that can save hundreds, if not thousands of dollars per year for the borrower or homeowner.

• The very first item that should be reviewed is the property's tax assessed value given by the local county property appraiser.  If the appraised value is below the tax assessed value, the homeowner may begin the simple appeal process to lower their annual tax liability.  Our company has experience in this type of appeal and can help make the appeal process stress free for the homeowner.  Mortgage professionals tend to overlook this opportunity to be the good guy and help a homeowner out in a time of need (also an excellent way to gain trust and confidence to obtain more referrals!).
• PMI Removal.  Although the appraised value may not be enough to meet a borrower's current goal, it may be enough to eliminate PMI insurance from an existing mortgage.  This can add up to a huge savings over a short period of time!

If your appraisal comes in below your anticipated value and/or is not high enough to move on with your mortgage transaction, call us right away and discuss what your available options are. 

More and more every day our phone rings with people asking "Can't you just give me an estimate before you do an appraisal?".  The simple answer is NO.  Any opinion of value, whether it be an "estimate", a "pencil search", a "value check", or "comp search" by definition is an APPRAISAL.  Federal and state regulations, along with the Uniform Standards Of Professional Appraisal Practice (USPAP) set forth very strict guidelines and laws that EVERY Appraiser must adhere to.  This includes, but is not limited to, documenting every request for an opinion of value for any property.  Just the task of documenting the request (also called creating a workfile) takes time and effort on the Appraiser's part.  Cape Appraisals has found that the Appraisers and Appraisal Companies that have the time to do this service for free are either under investigation by regulators and law enforcement (this practice gives the perception that the Appraiser is willing to guarantee a target value before accepting the assignment) or they are steadily dropping out of the business!

If you are concerned about paying a fee for a full Appraisal and just want an estimate of value based on comparable sales in the neighborhood, Cape Appraisals offers a simple solution:  Desktop Appraisals!  Our desktop Appraisal complies with all federal and state regulations as well as conforms to all USPAP standards.  This Appraisal is completed without an inspection of the home and considers all relevant information provided by the local MLS, Public Record, and the Client of the subject property. Although the results of a Desktop Appraisal do not guarantee the outcome of a full appraisal (including an inspection of the subject property), it does provide the user with a "ballpark" figure to work with.

Cape Appraisals takes pride in the Integrity and Professionalism displayed by all of our Appraisers.  We are here to provide the highest quality service with the most ethical Appraisers in Southwest Florida!