What is a real estate appraisal?
A real estate appraisal is a professional appraiser’s opinion of value.
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.
Appraisals may be obtained for a wide variety of types of real property.
The reasons for performing a real property appraisal are just as varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. Appraisals may also be obtained for litigation purposes, estate purposes, or any other purpose where the value of a parcel of real estate is in question.
Understanding the Appraisal (brochure)
Appraisal Report Formats
- Appraisal Report
- Restricted Appraisal Report
- Evaluation Report
- Oral Report
Appraisal Report
The most common appraisal report format is simply identified as an Appraisal Report.
For commercial appraisals, it is typically a narrative report which has a significant amount of flexibility in details and analysis depending on the type of property and the needs of the client. It may include all three approaches to value or it can include only one approach to value.
It always includes details concerning the subject property, description of the neighborhood, and details concerning the data and analysis used in arriving at the final opinion of value. It includes all of the elements necessary for the intended user of the report to fully understand the appraisal.
Restricted Appraisal Report
The Restricted Appraisal Report is the shortest written version of an appraisal report which a licensed appraiser can prepare. It is intended to be used only by the client/intended user.
Due to the brevity of the document, it could be misleading if used by any other user. The Restricted report is flexible depending on the property type and needs of the client.
It is typically a short document but, like the regular Appraisal Report, it could report the conclusion from having completed only one valuation approach or even all three approaches to value. Data utilized in the analysis may be included in the report or it could be retained in the file depending on the needs of the client.
Evaluation
Some clients may request an Evaluation. That client typically needs an opinion of value for a property which they expect to be below the value (appraisal threshold) requiring an appraisal. In that instance, Bouldin and Associates typically offers a report which qualifies as a Restricted Report but meets all of the minimum elements for an Evaluation.
Oral Report
Some clients many only need an oral report. Any opinion of value verbally expressed by an appraiser qualifies as an oral report. It must be supported by a written file which contains the data and analysis utilized in arriving at the opinion of value.
