The Know Hows of Real Estate Appraisal

Real estate appraisal is a service of developing an opinion of value based on highest and best use of real property. The highest and best use implies that the use produces the highest value for the land as when it is vacant. The use of the land is based on 4 different elements: physically possible, appropriate, legal and economically feasible.

Apart from the highest and best use of land, important factors such as the market value, condemnation value, quick sale value etc. must be included in the appraisal. At the time of mortgage valuation of improved residential property, this value should be reported on a standard form called Uniform Residential Appraisal Report.

In USA, the minimum appraisal standards and appraiser qualifications are defined by The Appraisal Foundation which is chartered by Congress. One of its boards Åµhe Appraisal Standards Board (ASB) periodically publishes the Uniform Standards of Professional Appraisal Practices (USPAP). It provides the minimum development and reporting standards which an appraisal report should meet. The Foundation is also responsible for setting the minimum qualification and eligibility criteria for appraiser licensure or certification through its board - Åµhe Appraisal Qualifications Board (AQB)?

In addition to state certification, an appraiser can earn professional designations from the several professional organizations. Some of these are the American Society of Appraisers (ASA), the American Society of Farm Managers and Rural Appraisers, the Appraisal Institute (AI) etc. The most valuable designation is the MAI (Member, Appraisal Institute).

It is the fiduciary responsibility of an appraiser to conduct an appraisal for a specific client. Generally, a residential appraiser accepts orders from lending institutions and gets the payment after the settlement or closing of the loan is over. In most cases, the homeowner or buyer pays for the services of the appraiser either directly or the total fees are added into the settlement costs.

There are different types of value required for a real estate appraisal. Some of them are:

Market Value: Market value is the estimated amount of the property for which it can be exchanged on the date of valuation between a buyer and seller. There are 3 different approaches to determine the fair market value of the property Cost Approach, Sales Comparison Approach, and Income Approach. The appraiser has to decide which one of the above approaches is most suitable. Based upon that approach, the appraiser then develops an appraisal report.
Value-in-use: The value of the property to one of the particular users, which may be higher or lower than the market value of the property.
Investment Value: The value of the property to one of the particular investors, which may be higher or lower than the market value of the property.
Insurable Value: The value of the property covered by an insurance policy.

Some Resources:

Phoenix Real Estate - Phoenix Real Estate. Search thousands of homes for sale on the Phoenix MLS. Find homes for sale in Phoenix, Glendale, Scottsdale, Goodyear, Litchfield Park, Peoria & Tempe Arizona.

Property in the Caribbean for sale – Living and Investing in the Mexican Caribbean: Caribbean beachfront property in Mexico for sale. Investment opportunities. All you need for a safety investment in Mexico. Off-plan investments.

Your satisfaction is our satisfaction: Dreams Real Estate Consultants.

JimGibson.Biz - Coral Oaks Golf Course Real Estate.

Las Vegas and Henderson Nevada Real Estate - For Las Vegas, Henderson and Southern Nevada real estate services take a look at this site.

JohnnyArcherHomes.Com: Your Mesquite Texas real estate resource center, find mls listings, condos and homes for sale in Mesquite Texas.

PropertySky.com - Malaysia Property and Real Estate Web Portal - Malaysia property and real estate web portal provides you all the information you want to know about property and real estates in Malaysia. A place where you can find malaysia property for sell, new developments, rentals, real estate agencies, home loans, property events, home related services and more.

UK construction companies - Real Estate News and Articles. Add to UK construction companies Directory.

UK Real Estate Agents - Real Estate News and Articles. Add to UK Real Estate Agents Directory.

California Mortgage Loan - FREE California mortgage information reveals the insider secrets banks do not want you to know about.

REAL ESTATE APPRAISER - We are a residential Real Estate Appraisal company. This site contains information about our Appraisal services and general Real Estate and Appraisal information.

Realty Find real estate listings, realtors, mortgage rates, home loans, condos, townhomes, home buying tips and more Search for a new home, home buying and selling tips to save you time and money,looking for buy house or sell house fast.learningand advice you how to find the best mortgage with the lowest interest rate.

Aurora Condos, Luxury Condo: Aurora Condos, Luxury Condo Hudson County and Philippe Starck. - Aurora Over the Hudson offers luxury condominiums in Jersey City, NJ for sale.