Why Choose Berlin Appraisal Company?
Hometown Company that Cares!
Berlin Appraisal Company prioritizes accuracy and exceptional customer service. All appraisal assignments are completed by a Certified Residential Appraiser that has met the highest standard of appraisal licensing requirements. Each appraisal receives the time and research necessary to produce credible appraisal reports.
Berlin Appraisal Company is a small, hometown company that cares about the appraisal industry and the community it serves. Hiring a local appraiser that is familiar with the unique characteristics of the Eastern Shore ensures an analysis of all factors that may impact the value of your property. Additionally, by hiring a local appraisal company, you are supporting local businesses and contributing to the growth of our community.
Why Accuracy Matters
An appraisal provides an objective and impartial assessment of your property’s current market value. A traditional appraisal includes a full inspection of the property to determine aspects impacting value such as condition, quality and an accurate measurement of the dwelling’s square footage.
Whether buying or selling a home, refinancing, accessing home equity, removing PMI or evaluating assets, it is essential that the property information is as accurate as possible. Newer alternative valuation methods have been created to prioritize quick turn times, often at the expense of accuracy. Hiring a local appraisal company to complete a traditional appraisal ensures you have the most accurate and up-to-date information about your property’s value.
Did you know? The square footage listed on an MLS listing is typically taken from the property's tax record. These square footage estimates may be inaccurate as most homes are not physically measured by the Assessment Office.
Recent Changes to the Appraisal Industry
The appraisal industry has seen drastic changes in recent years:
May 1, 2018: The Appraiser Qualifications Board (AQB) drastically reduced the education and experience qualification criteria for appraisers.
In response to appraiser shortages, the AQB drastically reduced the education and experience qualification criteria for licensed and certified appraisers. At Berlin Appraisal Company, all appraisal assignments are completed by a Certified Residential Appraiser that has met the highest standard of appraisal licensing requirements.
April 1, 2022: Fannie Mae requires single family dwellings to be measured in accordance with the ANSI Z765-2021 Measurement Standard.
Despite Fannie Mae’s intentions of creating a more unified measurement practice across the appraisal industry, it should be noted that the square footage provided in the MLS system is typically taken from county tax records or estimated by realtors and NOT measured by the realtor in accordance with the ANSI Z765-2021 Measurement Standard. Therefore, there may be significant discrepancies between the square footage measured by ANSI standards for an appraisal and the square footage listed on the property’s tax record or MLS listing.
Key highlights of the ANSI Z765-2021 Measurement Standard include:
Finished areas must have a ceiling height of at least 7 ft. If a room's ceiling is sloped, at least 50% of the finished square footage must have a ceiling height of at least 7 ft. and no portion with a height of less than 5 ft. can be included (ie. Knee walls found in Cape Cods or Farm Houses)
Openings to the floor below cannot be included in the square footage (i.e. Two story foyers, living rooms, etc.)
Square footage calculations must be measured to the nearest inch.
March 1, 2023: Fannie Mae introduces alternative valuation methods.
The lending industry has made several changes to the appraisal methods utilized to complete lending transactions. Selling Guide Announcement (SEL-2023-02) March 1, 2023 introduces new alternative appraisal methods.
Value acceptance (Appraisal Waiver) – The use of Automatic Valuation Models (AVMs), computer based models utilizing statistical algorithms, to determine a property value in place of a full appraisal.
Value acceptance + property data – A data collector completes a property inspection to verify data in place of a full appraisal.
Hybrid appraisals – An appraisal is completed by a Licensed or Certified Appraiser with information obtained from a property inspection completed by a data collector.
The Data Collector?
The data collector is NOT necessarily a licensed or certified appraiser. As of the release date of Selling Guide Announcement (SEL-2023-02) March 1, 2023, a standard set of guidelines for experience and educational requirements has not been established for the data collector role. Without proper education, training and experience, a data collector may not have the experience and training necessary to accurately measure a house's square footage or properly identify condition and quality aspects impacting value.
Though efforts have been made to improve efficiency of the lending process, lack of education and experience requirements for data collectors pose a threat to the credibility of alternative appraisal methods. All licensed and certified appraisers can be verified on the Appraisal Subcommittee National Registry website.
