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Will I need a surveyor?
Depending on the size of your investment and your plans to build, many lenders will require a survey. It is always a good idea to obtain one, though. A surveyor can do something as simple as marking property corners to something as complex as scale drawings of the real estate, all improvements upon it, the changes in slope (rises and falls in the terrain), and anything a neighboring property owner has erroneously placed on the land under consideration, or vice versa.
When one owner's improvements are completely or partially on someone else's land, that is called an encroachment. I once had a neighbor who built his house almost completely on his next-door neighbor's land. No one knew where the boundary lines were. Five years later, after a total expenditure of US Dollars 50,000 in legal fees, surveyors, separate court-ordered appraisers, depositions, and other expenses, a judge ruled that the property line ran through the garage. The judge ordered the neighbor who actually owned the property to sell some of the land to the other person - enough for the house and a tiny amount of side yard. You want to avoid such problems. A survey is relatively cheap compared to potential court costs later on.
I recommend a survey if you are buying anything more than a subdivision lot. As I mentioned, boundary line disputes between neighbors can be extremely costly. In most circumstances there is no insurance coverage for the legal fees and potential liability unless you obtained a specific, seldom-ordered endorsement to your title insurance policy. In that case, the only way you will be able to buy that endorsement is if you have a survey.
If you plan on building improvements on land, you might want to order a topographic survey (changes in slope) so you will be able to calculate if you need any fill dirt for the low places or cutting down of the high places. You may also have to satisfy regulatory requirements regarding storm water control. To do that, you will need a drawing that shows where the water flows naturally. For more information, check out the website of LandSurveyor, US LLC. The site has some excellent articles and responses to frequently asked questions. It also contains links to other sites, including specialized ones for each state.
Why do I need an appraisal?
Virtually every loan in the United States must now be supported by an appraisal of the property value because of federal lending regulations. Due to abuses in the past, the borrower is not allowed to have any input into the appraisal process, for fear of influencing the outcome. On the other hand, if you have information about recent sales prices of comparable properties, you should share that with your lender. The information will probably make its way to the appraiser as part of the data he or she considers in arriving at a value.
If I am selling a property, I always like to obtain an appraisal. It serves as a reality check, to see if I am accurate in my own estimate of value. The appraisal also provides tremendous negotiating leverage for me. If a potential buyer argues about the price I have set for the property, I can show him or her the appraisal. While it will not help you with the bottom fishers, who always want to buy properties for less than their value, it will assist you with people who truly believe the property is worth less than its asking price but are willing to be educated otherwise. It also gives them confidence that their lender will provide the necessary financing, at that price.
The Appraisal Institute has some very good consumer brochures. It offers two designations. The MAI is the highest designation. It requires a college degree, 380 hours of appraisal instruction with a passing score on all 11 exams, a passing score on a two-day comprehensive exam, and 4,500 hours of experience. An SRA designation for residential appraisers and the SRPA for commercial property appraisers have much less stringent requirements.