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Recognizing Quality Appraisals
In today's world accurate and timely information is everything. Inaccurate value conclusions can have devastating effects on your real estate transactions. To serve you better, BRATCHER & ASSOCIATES offers you an insight into the different kinds of appraisals to help you decide on the type of information you need to make sound decisions. In general, the purpose of an appraisal is to provide you with an accurate and realistic estimate of value to be used in real estate decisions.
A quality appraisal report will conform to the accepted standards of the profession set forth in the Uniform Standards of Professional Appraisal Practice. Depending on the type, a report leads the reader through the appraiser's analysis of relevant market data to a reasonable, well-documented value conclusion. BRATCHER & ASSOCIATES gives you personal attention and provides accurate, reliable, and actionable results.
What is an Appraisal?
An appraisal is defined as: (noun) "the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services." (2012/2013 Uniform Standards of Professional Appraisal Practice).
Approaches to Value
- Sales Comparison - This is the most commonly understood approach. Values are based upon the sales of similar properties.
- Cost - Value is based upon the cost to acquire land and build new. This approach is best applied to new and newer properties.
- Income Capitalization - Valued is based upon anticipated income. This approach is often utilized on rental properties and other properties than generate income.
WHY HIRE AN APPRAISER
Appraisals are not just for banks providing mortgages. Hiring an appraiser is beneficial to understanding the true value of your real estate. Hiring an appraiser can be instrumental in:
- Helping you make the best financial and/or business decision
- Settlement of estates
- Providing fair and impartial property values to settle divorces
- Property tax appeals
- Helping to settle matters of litigation where real estate is involved
