Definition§
An independent fee appraiser is a professional who provides property valuations without any vested interest or affiliation with any lending association or investor. Unlike salaried appraisers who work directly for lending institutions, independent fee appraisers operate on a fee basis, ensuring objective and impartial appraisals.
Examples§
- Home Purchase Appraisal: A homebuyer requires an unbiased evaluation of a property’s worth. The bank hires an independent fee appraiser to conduct the appraisal to avoid any potential conflicts of interest.
- Property Tax Appeal: A homeowner believes their property has been overvalued for tax purposes. They hire an independent fee appraiser to provide a neutral appraisal that can be presented for a tax appeal.
- Estate Settlement: The executor of an estate needs to assess the value of real estate as part of the estate’s assets. An independent fee appraiser is contacted to ensure the valuation is objective and reliable.
Frequently Asked Questions§
What distinguishes an independent fee appraiser from a salaried appraiser?§
An independent fee appraiser operates independently and is hired on a fee basis, without affiliation to lending institutions or investors. Conversely, salaried appraisers are employed directly by lending institutions, potentially leading to conflicts of interest.
Why is independence important in property appraisal?§
Independence ensures that the appraiser provides an unbiased and objective evaluation of the property’s value, free from any external influence, which is crucial for transparent and fair property valuations.
Who commonly hires independent fee appraisers?§
Independent fee appraisers are often hired by banks, lawyers, real estate agencies, homeowners, and government entities seeking impartial valuations for various purposes, such as mortgage lending, legal disputes, estate settlements, and tax assessments.
Related Terms with Definitions§
- Appraisal: An assessment or estimation of the value of a property by a qualified professional.
- Market Value: The estimated amount for which property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction.
- Assessed Value: The dollar value assigned to a property for purposes of measuring applicable taxes.
- Comparative Market Analysis (CMA): An estimate of the value of a property based on the sales of similar properties in the same area.
Online Resources§
- Appraisal Institute
- National Association of Appraisers
- American Society of Appraisers
- HUD Appraisal Resource Page
References§
- “The Appraisal of Real Estate” by The Appraisal Institute
- “Fundamentals of Real Estate Appraisal” by William L. Ventolo and Martha R. Williams
- “Real Estate Appraisal: From Value to Worth” by Tom Walley and David Mackmin
Suggested Books for Further Studies§
- “The Appraisal of Real Estate, 14th Edition” by The Appraisal Institute
- “Mastering Real Estate Appraisal” by Dennis H. Carr and James E. Follain
- “Real Estate Valuation Theory” by Ko Wang
- “Real Estate Appraisal Principles” by Betty J. Kramer
