The real estate industry depends greatly on the relationships between agents and their clients. However, another professional - the home appraisal expert - is just as integral to the success of each transaction.
Without an appraiser, lenders wouldn't have the information they need to offer home loans, and both buyers and sellers wouldn't know how much their home was worth. In fact, the entire process would be put on hold. With that said, appraisers are incredibly important. Their job is also challenging, as the market and home improvement trends change on such a regular basis.
While this means that the best appraisers know their profession well, a recent study from the Utah Association of Appraisers has found that how they get paid may not be as closely related to their experience as one might think.
Other factors decide home appraisal fees
The Utah Association of Appraisers conducted two surveys to comprise their study on the home appraisal industry - one for lenders in the state and the other for appraisers. In total, almost 6,000 professionals were questioned.
The study found that lenders were willing to shell out more money for an appraiser for several factors, specifically the complexity of the job itself. The more challenging the home was to value, the more likely the professional was to get a bigger paycheck. On the other hand, lenders weren't as eager to pay higher fees if the appraiser had a lot of experience and education, but they did respond favorably if they had a professional designation.
In addition, 79 percent of the appraiser respondents noted that they did not have a designation by a national appraisal institution. Furthermore, 53 percent of the lenders who took part in the survey explained that they preferred to use designated appraisers over undesignated ones.
Taking on a complex and unique real estate project can be tough. Home appraisers must have a comprehensive knowledge of the market, including remodeling trends. With CRS Data, it is simple to get the right information, with a wide range of mortgage records, warranty deeds and much more, all online. To learn about how CRS Data gathers its reliable data, click here.
Homeowners have certain improvement preferences
According to Realtor.com, 2014 has brought its own set of home improvement trends. For home appraisal experts, it can help to learn what people are doing to their properties, so no job provides any surprises.
For example, many individuals are thinking about adding a deck or a patio. Realtor.com explained that this project provides a great return on investment, and will often help attract additional buyers when the property is listed. Some homeowners may also consider adding a water feature or outdoor fireplace. Like in years past, the kitchen remodel is popular, with plenty of people opting for a major upgrade such as new appliances, cabinets and countertops.
Overall, home improvement trends change from year to year. Appraisers need to keep up with all the shifts in the housing market, so they can bring the most knowledge possible into every home they value.