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What Is An Appraisal ?
An appraisal is an opinion of value, or the act or process of estimating value. This opinion is derived by using one, two or all three common approaches. These approaches are the comparison approach, cost approach and income approach.
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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 and monetary adjustments are made to reflect differences in the properties. The comparison approach is by far the most relied upon approach. |
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Cost Approach to value is what it would cost to replace or reproduce the structure on the date of the appraisal, less the physical depreciation, functional obsolescence and or economic obsolescence, plus the land value. |
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Income Approach to value is of primary importance in ascertaining the value of income producing properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces. |
WHY SHOULD YOU HAVE AN APPRAISAL?
| To obtain an opinion of value for:
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Since 1991 our service has come under a very tough code of responsibility as legislated in the Financial Institutions Reform, Recovery and Enforcement Act of 1989. This code is called the Uniform Standards of Professional Appraisal Practice (USPAP), and as such lays out very definitive paths in how an appraiser accepts, conducts and completes an assignment. To stay informed of the changes in our industry, hours of continuing education must be completed and volumes of information must be "digested" monthly to insure our reports comply with all industry standards and provide you, the client, with as concise and informative a report as possible.
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