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 (homeowners, estates, lenders, relocation
companies)?
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An
appraisal is a valuation tool used by mortgage lenders to verify
a property's worth for prospective financing. The mortgage
industry relies upon a qualified independent
real estate appraiser to guide them in their financing decisions.
But is this the only reason to get an appraisal? Many homeowners,
assessor's offices, attorneys, buyers and sellers utilize appraisal
for a variety of needs.
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.
In
addition to residential or commercial appraisal - and depending upon
an appraiser's designation and qualifications - he or she may
be able to assist with the following:
- Estate
planning and estate settlements
- Tax
assessment review and advice
- Advice
in eminent domain and condemnation property transactions
- Dispute
resolution-including divorce, estate settlements, property partition
suits, foreclosures, and zoning issues
- Feasibility
studies
- Expert
witness testimony
- Market
rent and trend studies
- Cost
/ benefit or investment analysis, for example, what will be the
financial return on remodeling
- Land
utilization studies
- Supply
and demand studies
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