Let's first cover what is an Appraiser? A Real Estate Appraiser in the state of Oklahoma has to be licensed by the Oklahoma Real Estate Appraiser Board. There are three types, Trainee, Licensed Residential, or Certified Residential. They must pass the state licensing exam and a background check. They have required education courses that must be met and a number of hours accumulated as necessary experience. They must also take continuing education like many professional licenses in the state. The Appraisal Institute offers continuing education for Appraisers to get certifications.
An Appraiser can give value on a home in 3 appraisal ways, these are what we see in a real estate transaction:
Sales Comparison Approach (SCA) or Market Approach:
This is the most common method used for residential properties.
It involves comparing the subject property to recently sold properties in the same or similar neighborhoods.
The appraiser considers factors such as size, features, and condition to determine a fair market value for the subject property.
Cost Approach:
This approach evaluates the cost of replacing the property with a similar one, minus depreciation.
It is particularly useful for new or unique properties where there may be limited comparable sales data.
The appraiser estimates the cost of the land and the cost to build the improvements, then subtracts depreciation to arrive at the property's value.
Income Approach:
This method is primarily used for income-producing properties, such as rental properties.
The appraiser estimates the property's value based on its potential income generation.
This approach involves analyzing the property's ability to generate income, taking into account factors like rental income, operating expenses, and capitalization rates.
The choice of approach may depend on factors such as the type of property, its condition, and the availability of relevant market data. It is important to note that Appraisers should have taken the Sustainable Buildings Certification to be able to appraise a property with Solar Panels or other sustainable building practices. If the Appraiser that comes out is not qualified to do the Appraisal on an energy-efficient home, then there are avenues that can be taken to get the right person out. First, the Appraiser always contacts the Listing REALTOR to schedule the appointment to view the home. Right then, the REALTOR should be asking if the Appraiser has the Sustainable Buildings Certification and if not, they need to call the Lender and inform them that they need to send a qualified Appraiser to the property. It is helpful for the REALTOR to have a qualified Appraiser's information ready for the Lender. Then that Appraiser can come out.
In Oklahoma, there is a niche for Sustainable Buildings Certified Appraisers. We need more Appraisers to get this designation so that these homes can reach their full market potential.
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