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Appraisal Basics


Exactly What Is an Appraisal For?

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There is more than one reason to seek an appraisal of property; therefore it is paramount that you understand which type of value you are assessing, before you get started with any appraisal. You must first determine if you are appraising the fair market value, the insurable value, the taxable value or the value of the properties perceived uses.

For example, is this a commercial or rental property that could afford you an income or is it strictly a property intended for private use? If there is a structure on the property the relative value of the structure or facilities, in relation to the land, its location (neighborhood), the available services or amenities and the surrounding area's infrastructure, will all have bearing on the final assessed/appraised value.

Do not make the mistake of thinking that an appraisal will create any value other than the true market value. An appraiser should only be determining what the actual physical condition of the land and structures are within their specific market, and are there any other conditions present that may have influenced the value.

All of this is accomplished, not only by an on site inspection, but through thorough research of the properties deeds and title documents, the neighborhood plan, the perceived quality of life within the neighborhood (is it a high crime or arson area or are their such things as good schools, hospitals, etc within the area).

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