Computech Appraisal Services of Greater Peoria has answers to "Frequently Asked Questions"


	Computech Appraisal Services of Greater Peoria is always happy to elaborate on any questions you might have about appraisals in Peoria and Peoria County. Contact Computech Appraisal Services of Greater Peoria today to talk about how we can help solve your specific valuation problems.

Describe an appraisal
Describe what an appraiser does
What would cause me to request services from Computech Appraisal Services of Greater Peoria?
How is an appraiser different than a home inspector?
Is an appraisal the same as a comparative market analysis(CMA)?
What does the appraisal report contain?
After completing the appraisal, how can I have a guarantee that the final number is legitimate?
What goes into an appraiser's certification?
Who do appraisers work for?
Where does Computech Appraisal Services of Greater Peoria get the information used to estimate values in Peoria County or other areas?
What can a full appraisal do for me?
My mortgage statement has an item on it for PMI? Can I get rid of that?
How do I get ready for the appraiser?
What does "Market Value" mean?
Does the appraisal belong to the bank or the consumer?
I want to get more for my house. Where should I spend money renovating?

Describe an appraisal (Return to top)

The process of creating an appraisal report consists of an inspection which leads to an opinion of value. This opinion or estimate is discerned using a formal process that generally uses the three main "common approaches to value". One of the methods in use is the Cost Approach, which is what it would cost to replace the improvements to the home, minus depreciation and physical deterioration, adding the land value. Easily the most common approach in finding the value of a house is the Sales Comparison Approach which involves figuring a comparison to similar houses close by. The Sales Comparison Approach is normally the most definitive and best indicator of cost for a residential property. The third approach is the Income Approach, which is the most important method in appraising income producing properties - it involves estimating what an investor would pay based on the money generated by the property.

Describe what an appraiser does (Return to top)

An appraiser provides a professional, unbiased opinion of market value, to be used in making real estate transactions. Appraisers illustate their expert analysis in appraisal reports.

What would cause me to request services from Computech Appraisal Services of Greater Peoria? (Return to top)

There are a lot of reasons to purchase an appraisal from Computech Appraisal Services of Greater Peoria with the most common reason being real estate and mortgage transactions. Other reasons for purchasing an report include:

If you are applying for a loan.
To lower your tax burden.
To show a homeowner has 30% equity and remove PMI.
To contest inflated property taxes.
To deal with an estate.
To provide you a negotiating tool when purchasing real estate.
To figure out an honest sales price when putting your home on the market.
To protect your rights if your property is being taken by means of eminent domain in a condemnation case.
Because an official agency such as the IRS requires it.
If you ever find yourself in a lawsuit.

If you need a more detailed explanation of the appraisal process, please click here.

How is an appraiser different than a home inspector? (Return to top)

The appraiser is not a home inspector and does not do a comprehensive home inspection. An inspection is a third-party investigation of the livable structure and mechanical systems of a house, from the roof to the bottom. The stereotypical home inspector's report will contain an evaluation of the condition of the home's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and accessible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.

Is an appraisal the same as a comparative market analysis(CMA)? (Return to top)

Simply, they share nothing in common. The CMA relies on indefinite trends in the market. An appraisal is based on comparable sales that can be verified by public record. Area and building costs are also important in an appraisal. All a CMA does is generate a "ball park figure." Being a documented and carefully investigated opinion of value, appraisals are defensible and stand up in legal situations.

Who's behind the report is hands down the most significant difference between a CMA and an appraisal. Real estate agents, who may not have a true grasp of valuation methods or the entire market, write CMA's. A certified, Illinois licensed professional who made their livelihood on valuing real estate in and around Peoria County is behind the appraisal. Moreover, the appraiser is an independent party, with no vested interest in the property's value, unlike the real estate agent, who gets a commission based upon the value of the home.

What does the appraisal report contain? (Return to top)

Every appraisal should demonstrate a credible value opinion and must document the following:

Who engaged the appraiser and other intended users.
How the appraisal is supposed to be used.
The reason for the assignment.
The type of value contained and a definition of that value.
The effective date of the value opinion.
Characteristics of the property that have a bearing on the value, including: location, physical description, legal attributes, economic attributes, the property rights in question, and non-real estate items included in the valuation, such as personal property, permanent equipment installations and even intangible considerations.
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 considered while working up the appraisal.

For a more comprehensive view of all that goes into an appraisal report click here: Sample Appraisal Report

After completing the appraisal, how can I have a guarantee that the final number is legitimate? (Return to top)

In communicating an appraisal report, each appraiser must ensure the following:

The appraisal contained a suitable analysis of the information.

That crucial errors of omission or commission were not committed individually or collectively.

That appraisal services were rendered in a careful and cognizant manner.

The final appraisal report was easy to explain, credible and conclusive.

There are rigorous classroom and practical experience requirements that must be fulfilled in order to get an appraisal license in Illinois. Plus, appraisers must stick to a meticulous industry code of ethics and observe national standards of practice for real estate appraisal. The rules for carrying out an appraisal and documenting its results are insured by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).

(Return to top)

Regulations regarding licensing and certification of Real Estate Appraisers vary from state to state. In general, licensing and certification is commonly associated with many hours of classroom study, tests and practical experience. Once an appraiser is licensed, he/she must then take continuing education courses so that the license doesn't expire. To see the specific requirements for any state click here.

Who do appraisers work for? (Return to top)

Mortgage lenders are an appraiser's typical customer, using their services to ensure property involved in a mortgage transaction is enough to cover a loan balance in the case of default. Attorneys and CPAs also retain the services of appraisers for divorce and estate settlements.

Where does Computech Appraisal Services of Greater Peoria get the information used to estimate values in Peoria County or other areas? (Return to top)

Gathering data is one of the main things an appraiser engages in. Data can be divided into Specific or General. Specific data is collected from the property itself; Location, condition, amenities, size and other specifics are noted by the appraiser during an inspection.

General data is gathered from a number of places. To find out about recent sales to be used as "comps", we often use the local Multiple Listing Service. To verify actual sales prices, we use items in the assessor's office and other public documents. Appraisers routinely need to report when a property is in a flood zone, and that information is retrieved from a FEMA data outlet such as a la mode's InterFlood service.

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.

What can a full appraisal do for me? (Return to top)

If you're making any kind of financial decision and the value of your home is relevant, you'll want a full appraisal. For those selling a home, you'll want to determine the 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. When buying, be sure you're not overpaying by commissioning an independent appraisal. For people settling an estate or divorce, an appraisal from Computech Appraisal Services of Greater Peoria is the best way to ensure assets are split up evenly. Simply put, a house is often the single, largest financial asset anybody owns. Knowing its true worth is essential to making informed financial decisions.

My mortgage statement has an item on it for PMI? Can I get rid of that? (Return to top)

PMI is short for for Private Mortgage Insurance. This supplementary policy guards the lender in case a borrower is unable to pay on the loan and the worth of the house is less than the balance of the loan. Once you reach the point where your home's equity plus the amount you've paid is at least 20% of your loan balance, you can have your PMI dropped.


	Has your home value appreciated since you first purchased? Contact Computech Appraisal Services of Greater Peoria today at 309-692-0711 to see if you can save money by removing your Private Mortgage Insurance payment.

How do I get ready for the appraiser? (Return to top)

The first step in most appraisals is the home inspection. What this entails is the appraiser, after setting up an appointment, personally going through the home - recording the layout of the rooms, taking photos and documenting the general condition of its amenities. On the home's interior, pick up any clutter and make sure we can access things like furnaces and water heaters. On the outside, trim any landscaping so we can be free to get an accurate measurement of outside walls.

You can make the inspection go faster and improve the accuracy of the appraisal report by having the following things on hand:

Information on any written private agreements, such as a shared driveway with a neighbor.
A list of any personal property that is part of the home and you intend to be sold with the home, such as an oven, or a washer and dryer, if applicable.
Any "Homeowners Associations" agreements or, if applicable, condo covenants or fees .
Find copies of the current listing agreement, broker's data sheet and, in the event of a pending sale.
A list of "suggested" improvements when the property is being appraised "as complete".

What does "Market Value" mean? (Return to top)

Market value or fair market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions 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: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) 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.

Does the appraisal belong to the bank or the consumer? (Return to top)

For mortgage transactions, the lender requests the appraisal, either directly or through a third party. While the buyer pays for the report as part of the closing costs, the lender retains the right to use the report or any information contained within. The buyer is certainly entitled to a copy of the appraisal - it's usually included with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender.

The exception to this rule is when a home owner hires an appraiser directly. 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 home owner can do whatever they want with the appraisal.

I want to get more for my house. Where should I spend money renovating? (Return to top)

A home's location - what city it is in and even what part of that city - is key to this popular question. For example, installing an inline humidifier could be nice in arid regions, but completely useless near the coast!

As a rule, the most value returned from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms weren't far behind, returning 85%. On the contrary, work that may not increase your value would be painting just for the sake of redecorating.