Coosa Valley Alabama Real Estate Appraisal

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Frequently Asked Questions

What is an appraisal?
How can I eliminate PMI (Private Mortgage Insurance)?
Can I get a copy of the appraisal a lender ordered on my home?
Is there anything I can do to speed up the process?
ERC or Relocation Appraisal

What is an appraisal?
An appraisal is an opinion of value or the process of estimating value. The opinion is derived by using one, two, or all three common approaches. The 3 approaches to valuation are:

  1. The Sales Comparison approach uses comparable properties "comps" of similiar location, size, and quality, that have recently sold. Adjustments are made to the comps to reflect the differences. The sales comparison approach is by far the most used approach when appraising residential property.
  2. The Cost Approach is an estimate of land value plus the cost to replace or reproduce the building and any other improvements. Finally a deduction is made for depreciation and obsolescence (if any).
  3. The Income Approach is used primarily in estimating the value of income producing properties. It provides an estimate of what a prudent investor would pay based on the net income received.

How can I eliminate PMI (Private Mortgage Insurance)?
If you purchased your home with less than a 20% down payment, you can assume that you are paying PMI.

PMI provides the lender with insurance in case a home owner defaults on their loan. You are charged an additional premium that you pay with every payment. If you prove to the lender that you have 20% or more equity in your home, they will drop the PMI payment. Depending on your original loan amount, the payments can be $25 - $150 a month.

If your loan is 3 years old or more, if you purchased at a below market price, or if you have made recent improvements that have increased the value of you home, you may have enough equity to have PMI removed.

To have your PMI removed you must contact your lender. The lender will order an appraisal which will have all of the necessary forms and information.

Once the equity level on your home reaches 20%, you have the right to have the Private Mortgage Insurance eliminated

Can I get a copy of the appraisal a lender has ordered on my home?
Federal Law (Equal Cedit Opportunity Act) requires that the lender provide you with a copy of your appraisal upon request.

In this lender/homeowner/appraiser relationship, the appraiser's client is the lender. This means that, under the confidentiality rule, the appraiser can only provide a copy of the appraisal to the lender.

Is there anything I can do to speed up the process?

The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time.

A survey of the house and property; a deed or title report showing the legal description; a recent tax bill; a list of personal property to be sold with the house if applicable; a copy of the original plans and specifications, the date and purchase price you paid when you purchased the property; a list of recent improvements and cost as well as any other information you feel may be pertinent.

ERC or Relocation Appraisal

ERC is an acronym for Employee Relocation Council. If you are a homeowner who is being transferred and your employer is providing relocation assistance then they have probably hired a relocation company. They will assist your employer with the move and will provide home sale assistance. The ERC appraisal will provide them with an anticipated sales price, normally not to exceed 120 - 180 days.

The relocation appraisal requires in depth market research, heavily considering active listings, time on the market and price trends.

Relocation appraisals are reported on the standard ERC Residential Appraisal Report Form. This is the industry’s accepted relocation appraisal format.

Coosa Valley Appraisal
P.O. Box 2359, Sylacauga, AL 35150
256-249-8605 (office) | 1-866-748-2989 (Toll Free Fax)

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