FAQ 

Listed below are some common questions we receive:

QUESTION: What is an appraisal?
ANSWER: With regard to real estate, an appraisal is essentially the unbiased rendering of a value estimate of an identified piece of real estate.

QUESTION: Is the person who pays for the appraisal the client?
ANSWER: Not necessarily. When a bank or mortgage company orders an appraisal in conjunction with a mortgage loan application, the customer often pays an appraisal fee up front, but the client is considered to be the bank or mortgage company. EVEN THOUGH A BORROWER, FOR INSTANCE,  PAYS FOR AN APPRAISAL, the appraiser still must report the results to whoever is listed as the client, typically the mortgage company. The mortgage company is obligated under federal law to provide a copy to the borrower, and the appraiser cannot legally discuss the report with the borrower.

QUESTION: Is an appraisal the same as a home inspection?
ANSWER: No. An appraisal, while concerned with the condition of the property, is trying to ascertain how the condition relates to value, whereas the home inspector is looking strictly at the state of the physical condition or component itself.

QUESTION: What is market value?
ANSWER: Market value is generally defined as the most probable selling price that a buyer, willing but not compelled to pay and a seller, willing but not compelled to accept, come to a meeting of the minds on.

QUESTION: Is an appraiser licensed?
ANSWER: In Pennsylvania, where First Equity Appraisal Services operates, there are two classes of appraisers: RESIDENTIAL APPRAISERS, who can only appraise up to four units, and GENERAL APPRAISERS, who can appraise any real property. However, merely having a license does not mean that you have the competence to take on an assignment. That’s why it is recommended that you thoroughly interview the prospective appraiser you intend to hire. (A third category of “Broker-Appraisers” was grandfathered in, but they are dying out, as they are no longer issuing these types of licenses.)

QUESTION: Can a real estate agent perform an appraisal?
ANSWER: NO-real estate agents cannot perform appraisals nor can they charge for any valuation service. They can ONLY, in the course of trying to obtain a listing, give a market analysis, which, of course, is biased by the obtaining of a potential commission,