Appraisal
101
An appraisal
is a professional opinion of value based on
a paired analysis of the market. The preparation
of an appraisal involves research into appropriate
market areas; the assembly and analysis of information
pertinent to a property; and the knowledge,
experience and professional judgment of the
appraiser.
The role of the
appraiser is to provide objective, impartial
and unbiased opinions about the value of real
property and to provide assistance to those
who own, manage, sell, invest in and/or lend
money on the security of real estate. New York
states requires appraisers to be state licensed
or certified in order to provide appraisals
to federally regulated lenders. Appraisers have
fulfilled rigorous educational and experience
requirements and must adhere to strict standards
and USPAP code of professional ethics. Qualified
State Certified appraisers bring knowledge,
experience, impartiality and trust to the transaction.
In so doing, they help their clients make sound
decisions with regard to real property.
Most appraisals
are reported in writing, although in certain
circumstances, an appraiser may provide an oral
appraisal. A written appraisal report generally
consists of: a description of the property and
its locale; an analysis of the "highest
and best use" of the property; an analysis
of sales of comparable properties "as near
the subject property as possible"; and
information regarding current real estate activity
and/or market area trends. The value indicated
by recent sales of comparable properties, the
current cost of reproducing or replacing a building,
and the value that the property's net earning
power will support are the most important considerations
in the valuation of real property.
The following
questions would be appropriate when selecting
an appraiser:
Are you licensed or certified in the state in
which you live?
How long have you been in practice?
What level of experience do you have in this
particular market and with this type of property?
Are you familiar with property in this neighborhood?
What types of clients have you had (homeow
