On a federal level, an appraiser must be a Certified Residential Real Property Appraiser or Certified General Real Property Appraiser. States often require additional licensing before this person can determine the value of residential or commercial properties.
Is a real estate appraisal an estimate of value?
A real estate appraisal is an estimate of a home's fair market value. A lender will use a real estate appraisal to determine if the home's contracted price supports the actual value of the home being purchased, given the home's condition, location, and features.
What is true about appraisals?
An appraisal determines the home's value to ensure that the price reflects the home's condition, age, location, and features such as the number of bathrooms. Also, valuations help banks and lenders avoid loaning more money to the borrower than the house is worth.
What type of property valuation is most frequently performed by real estate salespersons?
The market data approach, also known as the sales comparison approach, involves comparing a property to other recently sold properties in the same area of similar size and condition. For residential real estate, the market data approach is typically regarded as the most accurate comparison method.
What is appraisal cost?
Appraisal costs are fees a company pays to detect defects in its products ahead of delivering them to customers; they are a form of quality control. For most companies, the money that would be lost as a result of selling faulty products or services far outweighs the appraisal costs.
What types of data does an appraiser gather?
- General data: Information on the region, city and neighborhood surrounding the property; and.
- Specific data: Information on the location, lot and improvements.