The residential real estate appraiser collects information from several reliable sources such as public record and MLS. The process usually begins with a walk through inspection of the property. This inspection is generally limited to observations, major working systems are not checked. Once the property in question has been inspected, the appraiser then utilizes reliable data sources to compile comparable properties for further consideration. Sales data and current relevant listing/pending sales area driven to determine relevancy to the property in question.
The report will provide a legal description of the subject property. General description of the neighborhood including value ranges. Physical characteristics of the subject property such has gross living area, bedroom/bathroom count and condition of improvements. The report will note any adverse or positive site influences and any functional or external issues which may affect its marketability. Generally the sales comparison approach is the most relied upon approach to value for single family housing within a built-up area due to the lack of available land sales. Comparative market sales data the is considered to be reflective of current value trends is provided within a grid. Adjustments applied for significant differences based upon typical market reactions within the neighborhood. A final reconciliation of the sales indicators is provided in support for the final value estimate.
A commercial real estate appraisal involves estimating the value of a commercial property like office and factory buildings, workshops, constructed spaces for commercial use, before they are bought, sold, taxed, mortgaged, developed or insured.
While estimating the value of a commercial property, real estate appraisal firms take note of its unique characteristics, like whether it’s in an industrial area or a standalone building, proximity to commuting channels like highways, railway stations and airports, and similar issues. They also consider the foundation of the building, the roof and whether the building has undergone any renovation. Besides photographing the outside of the property, the real estate appraisal company is also likely to photograph the interiors and also the offices of the senior officials. After visiting the property, the appraiser would estimate its value by factoring in comparable sales in the same area, location, lease records, previous appraisals and possible value appreciation of the commercial property.
This is one of the most common methods of appraising commercial real estate. It’s also one of the most widely accepted. The method, typically, involves zeroing in on properties having similar characteristics in the same area and those that were sold recently. When such properties are found, they’re compared with the property that has been put up for the appraisal. The appraiser would deduct a value from the latter property for relative deficiencies and increase the value for advantages. The sales comparison approach is the usual method when an investor seeks conventional funding for the property.
This is a short-hand means for commercial real estate investors for determining the value of the property based on its capacity to generate income when compared to similar properties. If the buyer or seller is aware of the prevailing rates of capitalization for the property in question, then the income earned by the property can be divided by the capitalization rate and arrive at the correct value.
The cost approach is not a very commonly used method. The method assumes that the value is similar to the cost of constructing the property or its replacement costs. It calls for an exhaustive knowledge of material and construction costs.
While partnering with our company, you can always expect to get top quality and accurate reports within a reasonable turnaround time.
We always leverage the best technology for managing our work flow. Our clients vouch for our efficiency. We have access to all the appraisals being carried out from our company headquarters. Simply email or call us at the toll-free number to get the latest update on the status of your appraisal. Chances are that you may never need to contact us because we always keep our clients abreast of developments in their process.
mark Morton & Associates
Real Estate Appraisal