Real Estate and Home Appraisals
A general definition of appraisal is the act of making an estimate of the monetary value of personal, real, or intangible property. The estimate is usually provided by an objective professional or by a government agency. Real estate appraisals are the most common types of appraising. Home appraisals are necessary and important. The 2 main types of home appraisals are Fee Appraisals and Mass Appraisal. Fee appraisals refer to an individual property appraised by a private contractor – this may be required by a bank before issuing a loan etc. Mass appraisals are need when many properties are appraised by government agencies – this is required for setting values for property tax calculations. Different approaches in appraising a home include the market method, the cost method, and the income method:
1. Comparing other properties of similar size, location and quality in order to come to an educated decision of the value of the property.
2. Estimating what an investor would pay versus the net income the property produces – this method is not useful for residential properties.
3. The cost method where the value is determined by how much it would cost to replace the property minus depreciation.
To find a US real estate appraiser near you feel free to visit the official Real Estate Appraiser Directory.
To find a Canadian directory visit this Canadian Appraiser Directory.
A real estate appraisal is the valuation of the rights of ownership where the appraiser must find out and interpret the valued estimate of a home. An appraiser completes a report where consideration is given to the market, physical condition, location, amenities, and other features of the property.