The New Jersey Legislature created the State Real Estate Appraiser Board to regulate the appraisal profession and evaluate the credentials of applicants for licensure and certification.
This board is responsible for the regulation of real estate appraisers in New Jersey. The category of licenses issued by the board include licensed real estate appraisers, residential appraisers, certified general appraisers and apprentice appraisers.
An appraisal is an independent, unbiased estimate of value of real property. The appraiser is hired by a consumer or by a lender, such as a mortgage company or a bank, to analyze real estate for the purpose of estimating value. The lender then determines whether the property is worth enough to justify or support the loan which is being sought.
The lender may hire an appraiser when the consumer is applying for a mortgage or home equity loan. The appraiser arrives at an appraisal that allows the lender to determine what amount can be loaned to the consumer, if any.
Only licensed or certified appraisers are permitted to appraise real estate.
Some examples of when you may want to hire an appraiser would be when:
- applying for an extension of credit;
- a legal issue is involved, such as settling an estate; or
- there is a transaction involving a financial institution, such as when applying for a mortgage or home equity loan.