What is an appraisal?
An appraisal is an unbiased estimate of what a buyer might expect to pay – or a seller receive – for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party, most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the true value of their property.
At the Assistant Professor level, an appraisal of teaching, research/creative activity and service, is performed in the faculty member’s fourth year to determine if he/she is ‘on track’ for promotion. The dossier is submitted in the fall and the FPC (acting as the ad hoc committee doing the appraisal) forwards their report and the dossier to the Vice Provost’s office. After review of the file by CAP-OC and the Vice Provost, an appraisal letter is sent to the candidate with reviewer’s comments on performance in teaching, research/creative activity and service. The intent of the appraisal is to provide feedback on the areas of satisfactory performance, as well as collegial advice as to how the candidate can improve those areas where there are problems (APM 220-83, APM UCD Procedure 1 A.).
An appraisal is a thought process leading to an opinion of value. This opinion or estimate is arrived at through a formal process that typically uses the three ”common approaches to value”. They are the Cost Approach – which is what it would cost to replace the improvements, less physical deterioration and other factors, plus the land value. There is the Direct Comparison Approach – which involves making a comparison to other similar, nearby properties which have recently sold. The Direct Comparison Approach is normally the most accurate and best indicator of value for a residential property. The third approach is the Income Approach, which is of most importance in appraising income producing properties – it involves estimating what an investor would pay based on the income produced by the property.
An appraisal is a thought process leading to an opinion of value. This opinion or estimate is arrived at through a formal process that typically uses the three ”common approaches to value”. They are the Cost Approach – which is what it would cost to replace the improvements, less physical deterioration and other factors, plus the land value. Second is the Sales Comparison Approach – which involves making a comparison to other similar, nearby properties which have recently sold. The Sales Comparison Approach is normally the most accurate and best indicator of value for a residential property. The third approach is the Income Approach, which is of most importance in appraising income producing properties – it involves estimating what an investor would pay based on the income produced by the property.
An appraisal is a professional appraiser’s opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience and professional judgment of the appraiser. The role of the appraiser is to provide objective, impartial and unbiased opinions about the value of real property – providing assistance to those who own, manage, sell, invest in and/or lend money on the security of real estate. More…
