Appraisal is the act of estimating the monetary value of real, personal, or intangible property, usually performed as a service by someone recognized as an expert or certified by an organization.
In the field of real estate transactions, appraisal is the act of determining the value of a property. There are two main types of appraisal: An aircraft is any machine capable of atmospheric flight. ... Antiques are objects which have reached an age which makes them a witness of a previous era in human society. ... Jewelry (spelled jewellery in British English) consists of ornamental devices worn by persons, typically made with gems and precious metals. ... A real estate appraisal is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... // Use of the term The concept of property or ownership has no single or universally accepted definition. ...
Fee Appraisal - Appraisal of an individual property by a contracted appraiser who is usually paid a fee. For example, this will be done prior to a loan being issued by a bank, to verify that there is sufficient collateral should the borrower default.
Mass appraisal - Appraisal of many properties using a more statistical approach. Usually done by government agencies responsible for setting values for property tax calculations.
There are various approaches to determining the value, including: A loan is a type of debt. ... The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. ... Collateral could mean: Collateral in finance means a security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. ... Property tax is an ad valorem tax that an owner of real estate or other property pays on the value of the thing taxed. ...
Market - a.k.a. "sales comparison" - establishing the value based on a comparison of what similar properties have sold for.
Cost - Establishing value based on the cost to build that structure new, less depreciation.
Income - For commercial properties, establishing the value based on the income the property generates. For example, Retail space may be valued based on the rental income.
A real estateappraisal is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property.
In the United States, the rules of real estateappraisal are codified in the Uniform Standards of Professional Appraisal Practice (USPAP)developed by the Appraisal Institute, the largest and most influential professional organization of real estate appraisers in America.
USPAP was developed after the Savings and Loan scandal of the late 1980s when real estateappraisal in some states was essentially an unregulated industry.
Performance appraisal should also be viewed as a system of highly interactive processes which involve personnel at all levels in differing degrees in determining job expectations, writing job descriptions, selecting relevant appraisal criteria, developing assessment tools and procedures, and collecting interpreting, and reporting results.
Appraisal systems are expected to reveal under-productive units and to serve as a response system to focus attention on problem areas.
Appraisal activities, as an ongoing process, should connect the process to organizational functioning and have as their focus staff improvement, not simply salary adjustment and/or disciplinary action.
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