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 or government agency.
In the field of real estate transactions, appraisal is the act of presenting an opinion of the value of a property. There are two main types of appraisal: Airbus A380 An aircraft is any machine capable of atmospheric flight. ... Antiques (Latin antiquus, old) are objects which have reached an age which makes them a witness of a previous era in human society. ... An excavator. ... Jewellery (Jewelry in American spelling) comprises ornamental objects 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: It has been suggested that Lenders be merged into this article or section. ... A bank is an institution that provides financial service, particularly taking deposits and extending 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.
Often it is better that the homeowner orders the appraisal directly from the appraiser.
Desktop appraisals and automated appraisals many lenders use instead of appraisers are so error-ridden that they have been known to evaluate homes up to $200,000 less than they are worth.
Lenders and State agencies should be aware that Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"), prohibits federally regulated financial institutions from excluding appraisers from consideration for an assignment solely by virtue of their membership, or lack of membership, in any appraisal organization.
Rural appraises are trained to render an accurate opinion of value, whether it be the family farm, a rural recreational property or a major national agribusiness property.
Appraisers consider appraising to be both an art and a science.
Appraisers consider many factors such as price trends, amenities, proximity to schools, business districts, freeways, recreational benefits, etc. and prepares a report reflecting the opinions, analysis and conclusions arrived at during the process.
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