Real Estate Appraisers & Consultants

An appraisal is a written opinion of real estate value as of a specific date. Prepared by a qualified appraiser, it represents an independent and impartial analysis of all the relevant data. Because market value is not apparent just by inspection, an appraisal is usually required when a property is sold, taxed, insured, or financed.

In the aftermath of the $400 billion savings and loan debacle in 1989, Congress passed a bill mandating that all states set up licensing programs for appraisers. Their intent was to help prevent the kind of shaky loans that led to the biggest taxpayer bailout in history.

Licensed appraisers must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP), which became effective in 1993. These rules have established a high level of professional and ethical standards which all licensed appraisers must follow.

Industry standard forms are used for most residential appraisals, but narrative reports are prepared for complex residential and all commercial properties. All the reports contain facts and analyses of the subject property, the neighborhood, and the market. Most contain exhibits, including photographs of the subject and comparable properties, a detailed scale sketch of the subject, a map showing the subject in relation to the comparables, and a flood plane map showing the subject. All appraisal reports contain a Statement of Limiting Conditions and Appraiser's Certification.

At minimum, all states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. Appraisers have fulfilled rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. Qualified State Certified appraisers bring knowledge, experience, impartiality and trust to the transaction. In so doing, they help their clients make sound decisions with regard to real property.

As stated above, most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its locale; an analysis of the "highest and best use" of the property; an analysis of sales of comparable properties "as near the subject property as possible"; and information regarding current real estate activity and/or market area trends. The value indicated by recent sales of comparable properties, the current cost of reproducing or replacing a building, and the value that the property's net earning power will support are the most important considerations in the valuation of real property.

In addition to residential or commercial appraisal - and depending upon an appraiser's designation and qualifications - he or she may be able to assist with the following:

Estate planning and estate settlements
Tax assessment review and advice
Advice in eminent domain and condemnation property transactions
Dispute resolution-including divorce, estate settlements, property partition suits, foreclosures, and zoning issues
Feasibility studies
Expert witness testimony
Market rent and trend studies
Cost/benefit or investment analysis, for example, what will be the financial return on remodeling
Land utilization studies
Supply and demand studies

The following questions would be appropriate when selecting an appraiser:

Are you licensed or certified in the state in which you live?
How long have you been in practice?
What level of experience do you have in this particular market and with this type of property?
Are you familiar with property in this neighborhood?
What types of clients have you had (homeowners, estates, lenders, relocation companies)?


	What's an Appraisal?

	An appraisal is a written opinion of real estate value as of a specific date. Prepared by a qualified appraiser, it represents an independent and impartial analysis of all the relevant data. Because market value is not apparent just by inspection, an appraisal is usually required when a property is sold, taxed, insured, or financed. In the aftermath of the $400 billion savings and loan debacle in 1989, Congress passed a bill mandating that all states set up licensing programs for appraisers. Their intent was to help prevent the kind of shaky loans that led to the biggest taxpayer bailout in history. Licensed appraisers must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP), which became effective in 1993. These rules have established a high level of professional and ethical standards which all licensed appraisers must follow. Industry standard forms are used for most residential appraisals, but narrative reports are prepared for complex residential and all commercial properties. All the reports contain facts and analyses of the subject property, the neighborhood, and the market. Most contain exhibits, including photographs of the subject and comparable properties, a detailed scale sketch of the subject, a map showing the subject in relation to the comparables, and a flood plane map showing the subject. All appraisal reports contain a Statement of Limiting Conditions and Appraiser's Certification. At minimum, all states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. Appraisers have fulfilled rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. Qualified State Certified appraisers bring knowledge, experience, impartiality and trust to the transaction. In so doing, they help their clients make sound decisions with regard to real property. As stated above, most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its locale; an analysis of the "highest and best use" of the property; an analysis of sales of comparable properties "as near the subject property as possible"; and information regarding current real estate activity and/or market area trends. The value indicated by recent sales of comparable properties, the current cost of reproducing or replacing a building, and the value that the property's net earning power will support are the most important considerations in the valuation of real property. In addition to residential or commercial appraisal - and depending upon an appraiser's designation and qualifications - he or she may be able to assist with the following: Estate planning and estate settlements Tax assessment review and advice Advice in eminent domain and condemnation property transactions Dispute resolution-including divorce, estate settlements, property partition suits, foreclosures, and zoning issues Feasibility studies Expert witness testimony Market rent and trend studies Cost/benefit or investment analysis, for example, what will be the financial return on remodeling Land utilization studies Supply and demand studies The following questions would be appropriate when selecting an appraiser: Are you licensed or certified in the state in which you live? How long have you been in practice? What level of experience do you have in this particular market and with this type of property? Are you familiar with property in this neighborhood? What types of clients have you had (homeowners, estates, lenders, relocation companies)?	. . . . . . . . . . . . . . . . . . . . . . . .
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