Blake Appraisal Corp. has answers to "Frequently Asked Questions"

Blake Appraisal Corp. is always eager to talk to you about any questions you might have about appraisals or real estate in Berkley and Oakland County. Don't hesitate to contact us today.

Define the term "Appraisal"
What does an appraiser do?
What would cause me to request your services?
What is the difference between an appraisal and a home inspection?
What does the appraisal report contain?
Upon completion of the appraisal, what assurance is there that the value indicated is trustworthy?
What are the requirements to be a certified appraiser?
Who engages the services of appraisers?
Where does Blake Appraisal Corp. get the data used to estimate values in Oakland County or other areas?
What can a full appraisal do for me?
Do you need anything from the homeowner in advance?
How does an appraiser define "Market Value"?
Does the appraisal belong to the bank or the consumer?
Are some home improvements more worthwhile than others?

Define the term "Appraisal"   (Back to top)

An appraisal is an investigation leading to an opinion of value. There are three "common approaches to value" which helps the real estate appraiser come to this opinion or estimate. One of the three is the Cost Approach - which is how much it would cost to replace the improvements, minus physical deterioration and other factors, then adding the land value. The Sales Comparison Approach involves finding similar homes in close proximity and figuring out the value based on making a comparison of those prior sales to the house being investigated. The Sales Comparison Approach is commonly the most definitive and clearest indicator of value for a home. One of the least common approaches in appraising residential properties is the Income Approach, which is generally used to figure the market value of a property based on what an investor would pay based on the capital produced by the property.

What does an appraiser do?   (Back to top)

An appraiser forumlates an objective and well justified determination of market value, often in the context of a real estate exchange. Appraisers exhibit their analysis in appraisal reports.

What would cause me to request your services?   (Back to top)

There are a lot of reasons to obtain an appraisal from Blake Appraisal Corp. with the most common reason being real estate and mortgage transactions. A few other reasons for getting an appraisal include:
  • To get a loan.
  • If you would like to lower your property tax burden.
  • To demonstrate a homeowner's acquired equity and remove PMI.
  • To fight high property taxes.
  • If you need to settle an estate.
  • To determine a reasonable property value when selling real estate.
  • Because a government agency such as the IRS requires it.
  • If you ever find yourself in a lawsuit.

What is the difference between an appraisal and a home inspection?   (Back to top)

Home inspectors do not figure out an opinion of value and do not do appraisal reports. The point of a home inspection is to investigate the structure of the house from basement to rooftop. The general home inspector's report will include an evaluation of the integrity 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.


To be honest, they have nothing in common. The CMA depends on indistinct market trends. The appraisal relies on specific proven comparable sales. Also, the appraisal verifies other factors like condition, location and building prices. A CMA delivers a "ball park figure." Being a documented and carefully investigated opinion of value, appraisals are defensible and stand up in legal situations.


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

Each report must demonstrate a believable value opinion and will identify the following:
  • The client and whose purposes the appraisal is to serve.
  • The intended use of the report.
  • The reason for the appraisal.
  • What was entailed in the process of completing the assignment.

Upon completion of the appraisal, what assurance is there that the value indicated is trustworthy?   (Back to top)

In the documentation of an appraisal, each appraiser must make sure of the following:
  • That the information analysis implemented in the appraisal was appropriate.

  • Whether individually or collectively, there were no substantial errors contained in the appraisal, nor any relevant details left out.

  • That appraisal services were done in a careful and cognizant fashion.

  • That a trustworthy, supportable appraisal report was imparted.
To become a state licensed appraiser, we must meet considerable education and experience requirements that give us the background to formulate an unbiased opinion. In addition, appraisers must abide by a meticulous industry code of ethics and observe national standards of practice for real estate appraisal. The guidelines for carrying out an appraisal and documenting its results are guaranteed by enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).

   (Back to top) Licensing and certification takes coursework, tests and real world experience. Once an appraiser is licensed, he or she is required to take continuing education courses so the license remains up to date. To see the specific requirements for any state click here.

Who engages the services of appraisers?   (Back to top)

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

Where does Blake Appraisal Corp. get the data used to estimate values in Oakland County or other areas?   (Back to top)

One of the primary things an appraiser does is to compile property data. Data can be classified as either Specific or General. Specific data is from the home itself; Location, condition, amenities, size and other specific data are documented by the appraiser while on site.



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

If you're making some sort of financial decision and the value of your home is relevant, you'll want to hire a licensed appraiser. When selling your house, an appraisal assists you in setting the most appropriate price. If you're buying, it makes sure you don't overpay. For parties settling an estate or divorce, an appraisal from Blake Appraisal Corp. is the best way to ensure assets are divided fairly. Simply put, a home is often the single, largest financial asset anybody owns. Don't make decisions in the dark with a professional appraisal.

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

PMI stands for Private Mortgage Insurance. This additional policy protects the lender in the event a borrower doesn't pay on the loan and the market price of the property is less than what is owed on the loan. Once you can prove the amount you owe on your home is less than 80% of the home's market value, you can make a case to your lender to drop the PMI.

Did you secure your mortgage with less than 20% down? Call Blake Appraisal Corp. today at 248-336-9093 to see if you can cancel your Private Mortgage Insurance premium.

Do you need anything from the homeowner in advance?   (Back to top)

We start with an inspection of the property. 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 status of its features. Is there anything you can do to help? Yes there is! First, be sure we have easy access to the exterior of the house . Trim any landscaping and relocate any items that would make it difficult to measure the structure. On the inside, make sure the appraiser can easily access appliances like furnaces and water heaters.

  • List of personal property to be sold with the home.

How does an appraiser define "Market Value"?   (Back to top)

In real estate appraising, Market Value is commonly defined as:




It's different when it's the homeowner engaging the appraiser for things outside securing a mortgage. 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 stated otherwise, the home owner can do whatever they want with the appraisal.




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