Statewide Appraisal Service, Inc.
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Today is the age of specialization and the real estate profession is no excep- tion to the rule. Real Estate ap- praising is a complex field. The sale of your home, business or any "real property" may be the largest trans- action of your lifetime. Appraisers' opinions can play an important part in almost any real estate transaction. |
What Is An Appraisal Why Should You Have An Appraisal |
An appraisal is an opinion of value or the act or process of estimating value. This opinion or estimate is derived by using the three common approaches, all derived from the market. They are:
1. Cost Approach to value is what it would cost to replace or reproduce the improvements as of the date of the appraisal, less the Physical Deterioration, the Functional Obsolescence and the Economic Obsolescence. The remainder is added to the Land Value.
2. Comparison Approach to value makes use of other "bench mark" properties of similar size, quality and location that have recently sold. A comparison is made to the subject property.
3. Income Approach to value is of primary importance in ascertaining the value of income producing properties, has little weight in residential type properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces.
Then, after through analysis of all general and specific data gathered from the market, a final estimate or opinion of value is correlated.
| What Is An Appraisal || Why Should You Have An Appraisal |
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An appraisal of real estate is the valuation of the rights of ownership, the appraiser must define the rights he intends to appraise.
The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property. An appraiser may spend only a short time inspecting the property, however, this is only the beginning.
Considerable research for collecting general and specific data must be accomplished before the appraiser can arrive at a final opinion of value.
Due to the many types of value, such as Market Value, Insurance Value, Tax Value and Value In Use, the need to precisely define the purpose of the appraisal is really indicated.
| What Is An Appraisal || Why Should You Have An Appraisal |
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Before engaging the services of an appraiser, it is advisable to thoroughly check the qualifications of the appraiser. The National Association of Independent Fee Appraisers conducts a professionally recognized testing and certifying program. The professional appraisers from Statewide Appraisal Service deliver when it comes to experience and qualifications - just take a look at our professional, highly qualified staff by clicking here.
| What Is An Appraisal || Why Should You Have An Appraisal |
| How Do You Choose An Appraiser || How You May Help |
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Once you have selected an appraiser, be prepared to answer the following questions or have as much information as possible:
1. Purpose of the appraisal.
2. The required completion date of the appraisal.
3. Provide a copy of deed, survey, purchase agreement or other pertinent papers pertaining to the property.
4. Is there a mortgage? If so, with whom, when placed, for how much, type of mortgage (FHA, VA, etc.), interest rate, and any other types of financing.
5. Copy of current real estate tax bill, statement of special assessments, balance owing and on what (sewer, water, etc.).
6. Is property listed for sale and if so, for how much and with whom.
7. What personal property is included.
8. If this is an income-producing property, you must have a brealdown of income and expenses for the last year or two and a copy of the leases.
| What Is An Appraisal || Why Should You Have An Appraisal |
| How Do You Choose An Appraiser || How You May Help |
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