When choosing an appraiser, there are many factors that need to be taken into consideration. For instance you want to know that they have enough experience to instill confidence. You may be asking ‘what is enough?’ in which case my reply would be at least five years but closer to ten but I digress. This article is all about the importance of choosing a local appraiser. Local knowledge is often overlooked in my opinion – particularly if it appears to come at a higher price than using someone outside of your area… and ‘price’ rears its ugly head again!
So, why is choosing a local appraiser so important?
The importance of local knowledge
Well for one thing, by performing appraisals in a particular area, the appraiser is more likely to be aware of local market trends. By having this knowledge, they are already ahead of the game compared to using someone outside of the area as they would need to carry out additional research. It is important that an appraiser has a detailed understanding of local trends in order to ascertain the true market value of the property.
They will definitely be qualified
Of course, selecting a good appraiser means making sure that they have the right license and qualification in place to handle the task. That goes without saying, but what about geographical competence? How can you be sure that they have enough knowledge of the area to do the appraisal justice? It is not as though they get a badge or certificate to say that they can cover specific areas outside of their locality. By choosing somebody local, you can be certain that as well as having the right credentials, they also have the right level of geographical competence.
Word of mouth referral
By choosing to hire a local appraiser, it is more likely that you can actually talk to others about their experiences rather than just relying on what you read on a website for example. It could even be that someone has had an appraisal carried out in your neighborhood so the appraiser already has all the detailed background knowledge not only of the State but for your specific local area. Providing you trust their judgement, all the research that you might otherwise have needed to carry out will have already been done for you!
They understand the level of diminishing returns
This is a law of economics that impacts all property appraisals across all the states of the US. However, the level to which it needs to be applied is something that only a local appraiser would know. In broad terms the law is based around economies of scale. So the individual cost of something lessens with volume. This means that just because a piece of land sells for $10,000 it does not automatically follow that double the land size will automatically sell for $20,000. However, how much it will sell for depends on the diminishing return that applies to that particular market area at the particular time that the appraisal takes place.
Atlantic Appraisal Group specializes in divorce appraisals, bankruptcy appraisals, date of death appraisals, estate appraisals, pre-listing appraisals and more throughout the Hampton Roads area including the cities of Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Hampton, Newport News, and Yorktown.
For more information contact us at (757) 296-8800, visit our website at HamptonRoadsAppraisers.com, or email us at info@HamptonRoadsAppraisers.com. You can also follow us on Twitter, YouTube, or “LIKE” our Facebook page as well.