Forrester & Co Real Estate Appraisers
Frequently Asked Questions
Answers to All Your Appraisal Queries
At Forrester & Co Real Estate Appraisers, we believe that making expert resources available is all part of exceptional customer service. As a leading appraiser in South Central Pennsylvania, we are your go-to source for all your appraisal needs — and we're here to answer any questions you may have. Check out some of the answers to our clients’ questions and book a consultation today!
Q: What does an Appraiser do? A: The primary point of an appraiser's job is to provide an unbiased, professional opinion of value. Appraisers' will often provide a written report that displays their investigation and value analysis of a property.
Q: Why do I need a professional appraisal? A: Looking to buy or sell a home? Need help settling an estate or appealing your tax assessment? We are here to provide exceptional and personalized service for all your real estate needs. We can assist with asset valuation for estate planning or divorce settlements. There are many reasons to have your home professionally appraised. A few reasons for ordering an appraisal report include: To help prospective buyers set offering prices. To help prospective sellers determine acceptable selling prices. To estimate the value of the security offered for a real estate loan; or to establish a basis for a decision to insure or underwrite a loan on real property. Estate planning or liquidation Financial planning To value an estate to determine gift or inheritance taxes. To establish a fair or equitable share of the established equity when dividing home equity in a Pennsylvania divorce. To challenge an inflated property tax assessment To help corporations or third parties purchase homes for transferred employees. To develop terms of a lease or lease rates To serve as a basis for just compensation in eminent domain proceedings To determine the feasibility of construction or renovation. Contact Us today to learn more.
Q: What kind of appraisals do you offer? A: Looking for a reliable and experienced real estate valuation service? Look no further than us! With years of experience reading the market and determining the best indicators that drive value, we provide thorough, well-supported, and quality insight and analysis to help you make informed decisions. Trust us for all of your real estate appraisal needs.
Q: How much experience does your firm have? A: We have been providing real estate appraisal services in the South-Central Pennsylvania for more than 30 years. Over the years, we have valued more than 6,700 properties totaling over $1.1 billion dollars in both residential and commercial real estate. Contact Us today to provide you with accurate and reliable appraisals.
Q: What areas do you cover? A: Looking for reliable and professional services in South Central Pennsylvania? Look no further! We cover the following Counties: York Cumberland Dauphin Adams Lancaster and Perry Contact us today to learn more about how we can assist you.
Q: What types of properties do you appraise? A: Some of the property types we appraise include: Residential, condominium, manufactured homes Multi-family properties Vacant land and Agricultural properties Mixed-use, commercial and industrial
Q: How much does an appraisal cost? A: Our fees are based on the amount of time it takes to complete the appraisal report. There are a number of factors determining the time involved that may include, but are not limited to, the location and type of the property, the size of the property, and zoning or any adverse environmental conditions. In order for us to give you a more accurate estimate for your appraisal needs, please Contact Us today for a detailed proposal with pricing.
Q: How long does the appraisal process take? ​The time it takes to develop an appraisal can vary depending on the complexity of the property being appraised and the availability of data. Generally, a simple residential appraisal can be completed anywhere between a few days upwards to two weeks, while a more complex commercial appraisal may take several weeks or even months. The appraiser needs to gather information about the property, research comparable properties, and analyze market trends before arriving at an estimated value. The appraiser also needs to make a site visit and conduct interviews with property owners or tenants. The turnaround time will be discussed and guaranteed when the engagement letter is drawn up. A typical turn-around time for a residential appraisal is within two weeks however we can provide expedited services for an additional fee.
Q: What is 'Market Value'? A: Market value as cited in the The Dictionary of Real Estate Appraisal is defined as the most probable price that a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller, each acting prudently, 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: Buyer and seller are typically motivated; Both parties are well informed or well advised, and each acting in what they consider their own best interest; 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. An estimate of Market value is considered valid only for the exact date specified in an appraisal report. Most appraisals call for current market value but, in some cases, a retrospective appraisal (as of a date in the past) such as for inheritance tax based on a date of death; or, a prospective appraisal (as of a determined at a point in the future) such as in the anticipation of renovation or new construction as of the date of completion.
Q: What’s included with your appraisal? A: An appraisal includes a clear, accurate description of the property; recent and comparable sales, comments explaining important issues, and an opinion of value supported by one or more of the three approaches to value*. Additionally, a scope of work is provided to outline the specific requirements and degree of research and analysis needed to develop the credible value conclusion. The report will contain sufficient information for the intended users to understand it properly. * Sales Comparison Approach * Cost Approach * Income Approach
Q: What are the steps taken to determine property value? A: Our appraisal reports lead the readers through the definition of the appraisal problem, analysis and relevant descriptive data, to a specific conclusion.The appraised value is developed utilizing one or more of the three approaches to value that include the Sales Comparison Approach, the Cost Approach or the Income Approach. The Sales Comparison Approach is the most widely used method of home appraisers to determine the value of a property by comparing it to similar properties that have recently sold in the same area. This approach takes into account factors such as location, size, condition and amenities to arrive at an estimated value for the property being appraised. The Cost Approach is a method used by appraisers to determine the value of a property by estimating the cost of replacing the property. This approach takes into account the cost of materials, labor, land value and other factors required to rebuild the property, and then subtracts any depreciation or wear and tear that the property has experienced over time. The resulting value is an estimate of what it would cost to construct a property similar to the one being appraised. The Income Approach is a method used by appraisers to determine the value of a property based on its income-generating potential. This approach is commonly used for commercial or multi-family properties. The appraiser estimates the income that the property is likely to generate over a certain period of time, and then applies a capitalization rate to arrive at an estimated value for the property. The capitalization rate is based on factors such as the risk associated with the property and the prevailing interest rates.h
Q: What is the highest and best use of a property? A: Highest and best use is a critical concept in real estate appraisal as it has a significant impact on a property’s appraised value. The appraiser considers the potential uses of the property and evaluates which one would generate the highest value given its location, size, zoning and other factors. The highest and best use may not necessarily be the current use of the property, and may require changes such as rezoning or redevelopment to achieve its full potential. The appraiser considers various potential uses for the property and evaluates which one would general the highest return on investment. It takes into account the costs associated with any necessary changes and the potential income or profit that could be generated from the property to arrive at an estimated value. Ultimately, the highest and best use of a property is a key factor in determining its appraised value.
Q: Who owns the appraisal report? A real estate appraisal report is owned by the party that orders it or is identified in the appraisal as the client. It is important to note that the homeowner, or party who pays for it, may not necessarily be the owner of the report. Federal banking regulations require the financial institution to be the client, regardless of who pays the fee. In a financing transaction, the intended use is to evaluate the property for a mortgage finance transaction. Although the borrower in this instance is legally entitled to a copy of the appraisal from the lender, the appraiser has a fiduciary and confidentiality restriction that does not allow discussion or transmittal of the appraisal report without authorization from the intended user. The actions of the appraiser in this matter are controlled by the confidentiality section of the ethics provision of the Uniform Standards of Professional Appraisal Practice.
Q: Who will have access to my appraisal? Will an appraisal of my home have an effect on my taxes? A: It’s important to know that appraisers are bound by confidentiality rules outlined in the Uniform Standards of Professional Appraisal Practice (USPAP). This means that they cannot disclose confidential information or valuation results to anyone other than the client and their intended users without prior permission. Additionally, getting a real estate appraisal won’t cause your property taxes to increase.
Q: Do you provide expert testimony? A: Yes, we have experience providing expert witness testimony for various legal cases. We charge an hourly rate which can be discussed directly based on the services required. Contact Us for more information.
Q: When hiring an appraiser who has to travel long distances, how to you determine how far is too far? A: Hiring a local appraiser who has a deep understanding of the local real estate market can provide you with a more accurate appraisal of your property. It is important to consider factors such as geographical competency to ensure the quality of their work. As a lifelong resident of South-Central Pennsylvania, we have developed a unique and qualified geographical competency that only a local appraiser can offer. Contact us today for a reliable and accurate appraisal of your property.
Q: What is the difference between an appraisal and a competitive market analysis (CMA)? A: A real estate appraisal is an unbiased, professional opinion of a property's value that analyzes various factors. An appraisal can only be prepared by a State Certified Appraiser who is bound by the Uniform Standards of Professional Appraisal Practice. On the other hand, a competitive market analysis is a tool used by realtors to determine a market value range and is often provided as a service in exchange for getting future business. It is important to note that unlike the realtor CMA, the appraiser has no vested interest in the value of a home and goes through certification and continuing education before being able to provide an independent value conclusion.
Q: What is the difference between fair market value, appraised value, tax assessment value and a 'Zestimate'? A: An appraisal is a professional estimate of a property's value conducted by a licensed appraiser. Fair market value in an appraisal refers to the estimated price that a property would sell for in an open and competitive market, with both the buyer and seller having reasonable knowledge of the property's characteristics and the market conditions. It takes into account various factors such as the property's location, acreage, style, size, condition, and comparable sales in the area. On the other hand, a ‘Zestimate’ is provided by the real estate website Zillow. A ‘Zestimate’ is an automated valuation model (AVM) generated by algorithms using very broad public and user-submitted data. The Zillow valuation should never be taken as a definitive value. A Zestimate may not take into account unique features or upgrades that can impact a property's value and is not as accurate as an appraisal conducted by a licensed appraiser. Tax assessment value is the value assigned to a property by a government agency for the purpose of calculating property taxes. It's typically based on a formula that takes into account the property's size, age, and other factors, but often does not reflect the current market value of the property. While fair market value and tax assessment value can be similar, they are calculated for different purposes and may not always be the same. It's important to remember that an appraisal is conducted by a licensed appraiser, while a tax assessment is conducted by a government agency for the purpose of calculating property taxes.
Q: What is the difference between an appraisal and a home inspection? It’s important to understand the difference between a real estate appraisal and a home inspection. Appraisers provide a professional estimate of a property’s value based on various factors, while home inspectors perform a detailed examination of a house’s structural and mechanical systems to identify any safety or maintenance issues. While appraisers consider the general condition of the home and unique features, inspectors focus on the overall safety and quality of the property. Appraisers do not provide home inspections and are not home inspectors.
Q: What is private mortgage insurance (PMI) and how can I get rid of it? A: Private mortgage insurance (PMI) is a type of insurance that protects the lender if you have a down payment of less than 20% of the purchase price or estimate of market value. PMI premiums are added to your monthly mortgage payment. Once equity in the home reaches 20%, you can save money be requesting to eliminate the monthly PMI premium. A home appraisal may help prove to the lender that you have gained substantial equity and qualify for PMI removal.
Q: How can I get the most out of my home appraisal? What steps can I take to prepare for an appraisal? A: We are often asked how a property owner can maximize their appraised value. It’s simple really, by performing minor and major repairs including cleaning and decluttering; and, by providing a list of recent upgrades and renovations, homeowners can help ensure that their home is presented in the best possible way to the appraiser. This can help increase the appraised value of the property and potentially lead to a higher sale price when the property is being sold.
Q: Which home renovations add the most to home value? A: There are several home renovations that can add the most value to your home: Painting is one of the top returns to value. Aim for neutral colors that will have a broad market appeal. Updating your kitchen can have a significant impact on your home’s value. There are simple ways to give your kitchen an updated feel depending on your budget including painting, refacing or replacing the cabinetry; changing out the cabinet hardware; installing new appliances; updated the countertops; and, installing new flooring. An updated bathroom will add to the value of your home and can also add appeal to your home. An updated bathroom is a major selling point for any home, this can include new fixtures, updated flooring and modern lighting. Outdoor improvements such as adding a deck, patio, or landscaping can improve your home's curb appeal and make your property more attractive to potential buyers. Energy-efficient upgrades such as installing energy-efficient windows, insulation, and HVAC systems can not only save you money on utility bills but also increase your home's value. Adding living space such as an extra bedroom, bathroom, or living area can also increase your home's value, especially if it's done in a way that's consistent with the rest of the home's design and in conformity with homes in the surrounding the neighborhood. Don’t overspend for your neighborhood.
Contact Us today to schedule a free consultation or to learn more!!!