A Real Estate Appraisal is an objective opinion, by a appraisal professional, of the value of real property. The person performing the appraisal should have sufficient knowledge and adequate experience to accurately give an opinion of value.
Real estate appraisers use recent comparable sales, current market data, neighborhood and community information, as well as local and national economic information to support the final value opinion.
A professional appraiser uses a multi-step process including:
Definition of the Appraisal Need
Data Collection and Analysis
Highest and Best Use Determination
Three Approaches to Value, Cost, Sales Comparison, Income
Reconciliation of the Values
The Appraisal Report
The Appraisal Report will normally include items such as: maps, pictures, sketches, and usually three pages titled UNIFORM RESIDENTIAL APPRAISAL REPORT. All of the information gathered during the valuation process is analyzed and condensed in this standardized report. The first page contains the basic information about the subject, the second page contains the indicated values from the three approaches to value, and the third page includes comments about the report.