Find information on real estate appraisal for your area

You can leave it up to the lender to choose an appraiser for your property or you can request they use an appraiser of your choosing. In most cases, the buyer pays the fee at closing for the appraisal, although it's negotiable in the contract.

I recommend: AppraiserUSA provides a quick zip code search linking you with licensed appraisers around the nation. If you need an appraiser experienced in commercial investment properties, try E-appraiser for free and fee-based options. For a quick valuation (not an appraisal) of a property based upon recent market selling records, try US Search.

Understand property appraisals for rural development

Development in rural areas is encouraged by state and national programs in the form of rural development loans. Unique to communities with smaller populations, the appraisals performed here follow United States Department of Agriculture (USDA) standards. The property itself must qualify in order for the buyer to get his loan.

I recommend: Visit the USDA Rural Development site for access to the information required on multi-unit housing, residential homes and square foot appraisal forms before marketing investment property.

Know what to expect on property appraisals when the Federal Housing Administration is involved

Appraisals for Federal Housing Administration (FHA) loans are stringent. First-time homebuyers naturally look for the best deal they can find and that often comes from the federal government in shape of low-interest loans and little, or no, down payment. Despite the good intent, an FHA loan closing usually requires more time and the appraiser must be FHA certified. Know what to expect in advance.

I recommend: Understand what is involved in an FHA property appraisal by downloading an official form. Before you accept a contract by an FHA buyer on your property, look at possible loan delays. You can choose to reject an offer with FHA financing.

Be on the lookout for real estate appraisal fraud

Unfortunately, mortgage fraud can occur with the help of a dishonest appraiser who abuses his position and falsely inflates the value of a property in return for a fee. The scam benefits the selling parties and the buyer may not realize what happened until months or years pass. When you suspect an inflated property value, investigate the situation further.

I recommend: Check Mortgage News Daily for links to your state’s mortgage fraud authority.  In addition, register a complaint against a national bank at the Office of the Comptroller of the Currency (OCC). If you feel a licensed real estate professional took part in a fraudulent appraisal scheme, contact your state’s governing board.