We complete appraisals for a host of other purposes, principally estate planning, legal disputes, capital gains and land donations. Each type has specific requirements and each differs in the amount of detail required.
The extent of required content determines the appropriate type of appraisal report to be prepared. Appraisal reports are either a narrative report (from concise to detailed), or a generic form report (usually appropriate for residential properties).
Some appraisal assignments are known as “retrospective” appraisals and involve the valuation of a property at a point in time many years back. We have access to comprehensive data going back to over fifty years.
Properties Appraised
We appraise a broad array of asset types. Residential properties appraised include single-family dwellings from mobile homes, townhouses and cottages to large executive houses. Apartment buildings and rural properties are also appraised. Commercial / industrial properties appraised include mixed-use properties, office and retail buildings and condominiums. Other properties include churches, new construction, hobby farms, equestrian facilities, rural land and resorts.
What is an Appraisal?
An appraisal is a formal, impartial estimate or opinion of value of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data.
How is Value Estimated? There are three basic methods of arriving at an indication of value:
- Direct Comparison Approach: is based on the premise that an informed purchaser is likely to pay no more for a property than the cost of acquiring another existing and equivalent property. The value estimate is based on sale prices and asking prices of comparable properties.
- Cost Approach: estimates the cost to build a new building identical to the subject being appraised, at current prices, subtracting accumulated depreciation and adding the estimated land value.
- Income Approach: relates to income-producing property and is based on the theory that there is a relationship between the amount of net revenue a property produces and its market value. The net revenue is capitalized into an estimate of market value by an appropriate method and rate.
To arrive at a final estimate of value, the appraiser places greatest reliance on the approach supported by the most reliable, factual and relevant market data.
