Before embarking on my real estate journey, I found myself in a labyrinth, negotiating my way through complex terminologies, legalities, and financial intricacies. One of the most crucial aspects that I underrated were real estate appraisers. Now, armed with hindsight and experience, I wish to share 11 elements I wish I'd understood about real estate appraisers before hiring one.

• The Importance of their Independence: An appraiser's role is to provide an unbiased estimate of the value of the property in question. Therefore, it's crucial they maintain their independence, free from any pressure or influence from parties interested in the sale. This is safeguarded by the Appraiser Independence Requirements (AIR), instituted after the 2008 subprime mortgage crisis.
• The Nature of Appraisal Reports: Appraisal reports are comprehensive documents that detail every aspect that contributes to a property's value. They include information about the property's physical characteristics, comparative market analysis, and even socio-economic conditions that could impact the property's value.
• Understanding 'Highest and Best Use': This principle posits that a property's value reaches its peak when its use is maximally productive. For instance, a rundown residential property in a prime commercial area could have more value as a commercial entity rather than a residence. A skilled appraiser considers this in their evaluation.
• Significance of Market Value: Market value, or the price the property would fetch in a competitive, open market, is one of the key elements of an appraisal report. Determining this requires a comprehension of principles from microeconomics and understanding the concept of equilibrium pricing.
• Utilization of the Three Approaches: The Sales Comparison Approach, Cost Approach, and Income Capitalization Approach are the three methodologies used by appraisers. Each has its strengths and weaknesses, and the choice of method depends on the property type, market condition, and data availability.
• Appraisers Aren’t Inspectors: While an appraiser takes note of apparent problems and considers these in their evaluation, they do not conduct thorough inspections. Thus, it's prudent to hire a professional inspector in addition to an appraiser for in-depth analysis.
• The Impact of Location: Appraisers factor in geographical considerations in their analysis. The significance of location is grounded in the principle of external obsolescence, whereby value decreases due to external factors beyond the property lines.
• Appraisals Aren't Guarantees: An appraisal is an educated, evidence-backed estimate, not a guarantee of sale price. Therefore, even with a favorably high appraisal, one must manage expectations about the final transaction price.
• Understanding Appraiser Qualifications: Understanding the qualifications and certifications required of appraisers is beneficial. For instance, Certified Residential Real Property Appraisers are qualified to appraise one-to-four residential units without regard to value or complexity.
• Appraisals and Mortgage Approvals: The mortgage lending process heavily relies on appraisals. A low appraisal can hamper your chances of securing a mortgage if the loan amount is more than the appraised value.
• Appraisal and Property Taxes: Your property tax bill can be influenced by an appraisal. Local tax assessors often utilize appraisal results when setting annual property tax amounts.

Understanding these elements of real estate appraisal cannot be overstated. It's a field that seamlessly blends economics, law, geography, and mathematics, requiring one to be not just financially savvy, but also to have a deep understanding of these diverse fields. Be it navigating the mortgage market or making wise investment choices, a skilled appraiser is an invaluable asset who provides clarity and insight. Don't underestimate them, as I did. Instead, acknowledge their authority, appreciate their expertise, and hire wisely.