What is an appraisal?
Appraisal is a document that gives an estimate of a property’s fair market value. An appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The appraisal is performed by an “appraiser” who is typically a state-licensed individual trained to render expert opinions concerning property values. In an appraisal, consideration is given to the property, its location, amenities as well as its physical conditions.
An appraisal is an estimate of a property’s fair market value prepared by a licensed professional who takes into consideration many items, including: recent sales of comparable properties, location, home size and physical condition. An appraisal may cost anywhere from $250-$500.00 or higher and usually takes from 1-3 weeks to prepare. The Appraisal Standards Board (ASB) of the Appraisal Foundation develops, publishes, interprets and amends the Uniform Standards of Professional Practice (USPAP) which sets forth the standards for appraisers and the users of appraisal services.
Plain and simple, an appraisal is an impartial estimate or opinion of value, usually written, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data. The opinion of value is made by a person who has sufficient knowledge and experience to accurately estimate its value. Types of appraisal reports. There are typically three types of appraisal reports and include a Self-Contained Appraisal Report, a Summary Appraisal Report and a Restricted Appraisal Report. Each one of these report are further divided to include being either Complete or Limited. Most appraisal reports are Complete appraisal reports. In some instances where a Full and Complete Appraisal Report is not required, the appraiser may develop a Limited Appraisal report. What’s the difference?…. In general terms the difference between the Self-Contained Appraisal Report and the Summary Appraisal Report is the level of detail of presentation while the difference
