|
What
Is An Appraisal?
A real estate appraisal is
an opinion of value or the act or process of estimating value of a property.
This opinion is derived using one, two or all three common appraisal
approaches. These approaches are the sales comparison approach, cost
approach and income approach.
- Sales Comparison Approach
to value makes use of other "comparable" properties of similar size,
quality and location that have recently sold. A comparison is made
to the subject property and monetary adjustments are made to reflect
any differences with the comparable property. The comparison approach
is by far the most utilized appraisal approach.
- Cost Approach to value
is what it would cost to replace or reproduce the improvements as
of the date of the appraisal, less the physical depreciation, functional
obsolescence and or economic obsolescence plus the value of the land.
- Income Approach to value
is of primary importance in ascertaining the value of income producing
properties. This approach provides an objective estimate of what a
prudent investor would pay based upon the net income the property
produces.
| Reasons
why you should have an appraisal done: |
|
|
|
Anytime
you need to determine the value of your property.
|
| For
additional information on our appraisal services or to place
an order, please contact our office. |
|
