Excerpt:
The appraisal of real estate values is a specialized segment of the real estate industry. An appraisal might be done to determine the value of a home that an individual wants to sell, or it may be done at the request of a lending institution that is considering providing a mortgage loan to a prospective buyer. Appraisers use accepted methods to determine the value of a piece of property and generally express an opinion on the fair market value, insurable value, or investment value of the property. Real estate appraisers visit the property, search public records, and interview those with knowledge about the property and the surrounding community, taking into consideration the structural quality and overall condition of the property. Any trends in real estate or imminent changes in the community that could influence the value of the property are also taken into account when appraising the property. Many appraisers specialize in particular types of property, such as residential properties, commercial office buildings, or shopping centers.
Source: "Real Estate Agents and Managers." Encyclopedia of American Industries. Online Edition. Thomson Gale, 2006. Reproduced in Business and Company Resource Center. Farmington Hills, Mich.:Gale Group. 2009.
http://galenet.galegroup.com/servlet/BCRC.
University of Texas At San Antonio, John Peace Library. San Antonio, TX. 14 Apr 2009.
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Excerpt:
In 2006, appraisers and assessors of real estate held about 101,000 jobs. Most appraisers and assessors work full-time. More than 3 out of 10 were self-employed; virtually all were appraisers. Employment was concentrated in areas with high levels of real estate activity, such as major metropolitan areas. About 25 percent worked in local government; almost all were assessors. Another 30 percent, mainly appraisers, worked for real estate firms, while a relatively small number worked for financial institutions, such as banks and credit unions. Employment of appraisers and assessors of real estate is expected to grow by 17 percent, which is faster than the average for all occupations, over the 2006-16 decade. Employment of appraisers will grow with increases in the level of real estate activity. Additionally, more appraisers will be hired to help with litigation claims, probate cases, foreclosures, business valuations, and divorce settlements. Employment of assessors will grow with the increase in the amount of real property to be assessed. However, employment will be held down to a certain extent by productivity increases brought about by the increased use of computers and other technologies, which make for faster valuations and allow appraisers to take on more customers and each assessor to assess more properties. Independent fee appraisers will see the strongest growth because banks and other financial institutions increasingly are contracting work out to them to make loan appraisals on a case-by-case basis. The cyclical nature of the real estate market also will have a direct effect on the job prospects of appraisers, especially those who appraise residential properties. In times of recession, fewer people buy or sell real estate, causing a decrease in the demand for appraisers. As a result, opportunities will be best for appraisers who are able to switch specialties and appraise different types of properties.
Source: http://www.bls.gov/oco/ocos300.htm
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Excerpt:
In order to strengthen the independence of the appraisal process, New York State Attorney General Andrew Cuomo has brokered an agreement with Fannie Mae, Freddie Mac and the Office of Federal Housing Enterprise Oversight, their primary regulator. The March 3 agreement eliminates mortgage broker-ordered appraisals, prohibits appraiser coercion, and reduces the use of appraisals prepared in-house or through captive appraisal management companies in underwriting mortgages. The agreement also enhances quality control in the appraisal process and establishes a complaint hotline for consumers and appraisers facing appraiser coercion.
Source: http://www.appraisalinstitute.org/ano/archive.aspx?volume=9&numbr=3/4
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Excerpt:Appraisals Listed in WSJ's "Call to Action"In a March 30 “Call to Action,” the Wall Street Journal recommended the strengthening of underwriting standards, including the establishment on “national real estate appraisal standards.” The recommendation topped the list of 20 principles for rebuilding the financial system, as developed by participants in The Wall Street Journal Future of Finance Initiative.
Source: http://www.appraisalinstitute.org/ano/current.aspx?volume=10&numbr=7/8#7024
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