Staff appraisers determine the value of a property for lending purposes. They specialize in specific types of properties and use documentation and physical inspections to develop an estimate of value. They also consult comparable homes to determine their current market value and must be familiar with the local real estate industry and community.
A staff appraiser appraises real estate for lending purposes. These finance professionals determine the value of a property so that a bank can decide how much money it wants to lend on a mortgage or equity loan. In many regions, a license is required to work as an appraiser. Regulations can vary and it may be wise to check job listings to see what types of qualifications employers expect when preparing to become a staff evaluator.
Before a bank originates a loan, it may request an appraisal of the property. Large banks retain staff to perform this function, rather than outsourcing the work. A staff appraiser may choose to focus on specific types of properties, such as land, single-family homes, or commercial real estate. This specialization can improve the quality and accuracy of assessments for the employer.
The appraiser on staff collects property documentation to check for common issues, such as a cloud on the title that can cause delays in the sale. Appraisers also visit the property for a physical inspection and may hire an inspector for an in-depth appraisal if this seems necessary. They can take note of location, physical condition and characteristics to begin developing an estimate of value. You may also need to consult comparable homes to determine their current market value.
“Comps”, as they are known, show how many properties of a similar type have sold in the last few months. They allow a staff evaluator to test the market and base an evaluation on what people are actually paying rather than an arbitrary evaluation. Homes must be in similar neighborhoods and must be comparable in terms of condition, lot size, and features. A three-bedroom house in good condition in a bad neighborhood, for example, is not comparable to a two-bedroom house that needs work in an excellent neighborhood.
Familiarity with the local real estate industry and community is important for a staff appraiser. Newcomers to an area may not know where the dividing lines are between different communities, for example, or they may not be familiar with problems commonly found in structures in that region. Staff appraisers can subscribe to real estate magazines, track sales statements at the title recorder’s office, and use other tools to track the market. If your assessments are incorrect, the consequences could be costly for your employers.
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