If you are purchasing or refinancing a home, the financial institution that is lending you the funds will most likely be responsible for hiring the appraiser. However, for all other purposes such as eliminating PMI (Private Mortgage Insurance) to reduce your mortgage payment; reducing your property taxes; divorce, estate or probate issues, you will be responsible for choosing and hiring the real estate appraiser.

So how do you choose a reputable, qualified real estate appraiser? Here’s a checklist:

Start by finding appraisers close to the property
Choose an appraiser who is knowledgeable about property values in your area or neighborhood. Chances are that if they live or work close by, they will have a deep knowledge of your local property values. The AppraisalWorld Directory will find appraisers within 3 or 10 miles of your property. These appraisers should know your area the best.

Check for state license or certification
Always make sure the appraiser is licensed or certified by the state to perform real estate appraisals. While state licensing and certification are not always an indication of quality, they ensure that an individual has met certain standards and has been authorized to perform appraisals on real estate properties. Do not use the services of any professional who is not licensed or certified.

Check if license or certification is current
Check with the government agency that issued the license or certificate to ensure that it is active; has not been revoked and that the appraiser is in good standing.

Check for other Professional Designations/Credentials
Many real estate appraisers belong to appraisal organizations that award professional designations based on experience, quality of work and examinations that often exceed the requirements for state certification. While it is not mandatory to belong to these organizations, membership is an indication of the appraiser’s commitment to continuing education and ethical standards.

Verify the appraiser’s local knowledge of your neighborhood
Ask the appraiser if they have ever worked in the neighborhood in which the property is located. Determine how much of their work is performed in the area surrounding the property. Appraisers who do a lot of their work in a particular market area often have a deeper knowledge of the corresponding property values than appraisers who are not as familiar with the market area. Additionally, they are more likely to know how “neighborhood variables” such as school districts affect the property values in the area.

Does the appraiser has experience working for Homeowners?
Lastly, find out if the real estate appraiser has experience performing appraisals for consumers as opposed to only working with loan officers or other real estate related professionals. Mortgage brokers and loan officers have distinctly different needs. An appraiser who understands the needs of a homeowner is more likely to help you learn the appraisal process and answer questions you may have along the way.