APPRAISAL FAQ

home / FAQ

Objectives of Appraisal Work

INTEGRITY * EXCELLENCE * COMPLIANCE

Objectives of Appraisal Work

 

An appraisal is undertaken to accomplish several objectives:

 

1. develop an opinion of value of a property

2. estimate the cost of producing, acquiring, altering, or completing a property

3. estimate the monetary amount of damages to a property

4. forecast the monetary earning power of a property

 

In specific instances, the work may have additional objectives, such as: the formulation of conclusions and recommendations or the presentations of alternatives (and their consequences) for the client's actions.

 

Objective Character of the Results of an Appraisal Undertaking

 

The primary objective of a monetary appraisal is development of a numerical result and must be developed objectively and without bias. It is unrelated to the desires, wishes, or needs of the client who engages the appraiser to perform the work.

 

The appraiser's primary obligation to his/her client is to reach complete, accurate, and credible conclusions and numerical results regardless of the client's wishes or instructions in this regard. The relationship between client and appraiser is not one of principal and agent. However, the appraiser's obligation to his/her client goes somewhat beyond this primary obligation. These secondary obligations are set forth in the following sections.

 

1.21 The term appraisal practice, as defined by the American Society of Appraisers, applies to any of the following operations that are executed within a framework of general principles of technical procedure and personal conduct:

 

• Develop a credible opinion of the value of property on the basis of research and analysis according to current professional methodology

• Forecasting of the earning power of property

• Estimation of the cost of property

• Production of a new property

• Replacement of an existing property by purchase or production of an equivalent property

• Reproduction of an existing property by purchase or production of an identical property

• Determining non-monetary benefits or characteristics that contribute to value

• The rendering of judgments as to age, remaining life, condition, quality, or authenticity of physical property, amenities; an estimate of the amount of a natural resource, population increase, nature of market, rate of absorption, etc.

 

What is an appraisal?

 

An appraisal is a thought process leading to a value conclusion.

 

What does an appraiser do?

 

The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions.

 

Why would a person need a home appraisal?

 

There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

 

To obtain a loan.

To lower your tax burden.

To establish the replacement cost of insurance.

To contest high property taxes.

To settle an estate.

To provide a negotiating tool when purchasing real estate.

To determine a reasonable price when selling real estate.

To protect your rights in a condemnation case.

Because a government agency such as the IRS requires it.

If you are involved in a lawsuit.

 

What is the difference between an appraisal and a home inspection?

 

The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

 

What does the appraisal report contain?

 

Each report must reflect a credible estimate of value and must identify the following:

The client and other intended users.

The intended use of the report.

The purpose of the assignment.

The type of value reported and the definition of the value reported.

The effective date of the appraiser’s opinions and conclusions.

Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items

All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Division of interest, such as fractional interest, physical segment and partial holding.

The scope of work used to complete the assignment.

 

After completing the report, what assurance is there that the information is valid?

In communicating an appraisal report, each appraiser must ensure the following:

 

That the information analysis utilized in the appraisal was appropriate.

That significant errors of omission or commission were not committed neither individually nor collectively.

That appraisal services were not rendered in a careless or negligent manner.

That a credible, supportable appraisal report was communicated.

 

 

Who has ownership of the completed appraisal report?

 

According to a statement within the Uniform Standards Of Professional Appraisal Practice (USPAP) on Appraisal Standards No.9 (SMT-9), the person who engages the service of the appraiser is the client. Therefore the completed appraisal report belongs to that person. Payment is not a determining factor in the ownership of the completed report.

 

Lenders are required by the Equal Credit Opportunity Act to furnish a copy of the appraisal to the borrower, if the borrower request a copy in writing. To obtain a copy of the appraisal report contact the lender directly.

 

How are appraisers certified?

 

Each state has established its own requirements for appraisers to be licensed or certified to appraise real property. State Appraisal Regulatory Agencies

 

 

For Expert Appraisal Services You Can Trust Us

ABOUT US

Accurate Appraisals, USA has become one of the most respected appraisal companies in the industry.   Accurate Appraisal USA customers benefit from the company's 5 decades of extensive experience in the appraisal industry. Accurate Appraisals USA  has assembled a core staff of experienced valuation, quality control, and administrative professionals and we stand ready to demonstrate our commitment to you!

 

EXCELLENCE IN ALL THAT WE DO.

CONTACT

3104 E Camelback Rd.   #315

Phoenix, AZ 85016

Phone: (855) 887-8378

Fax: (888) 557-1073

 

Email:  support@accurateappraise.com

 

© 2018  Accurate Appraisals USA.      Site designed by: Creative Admark

APPRAISAL FAQ

Objectives of Appraisal Work

INTEGRITY * EXCELLENCE * COMPLIANCE

Objectives of Appraisal Work

 

An appraisal is undertaken to accomplish several objectives:

 

1. develop an opinion of value of a property

2. estimate the cost of producing, acquiring, altering, or completing a property

3. estimate the monetary amount of damages to a property

4. forecast the monetary earning power of a property

 

In specific instances, the work may have additional objectives, such as: the formulation of conclusions and recommendations or the presentations of alternatives (and their consequences) for the client's actions.

 

Objective Character of the Results of an Appraisal Undertaking

 

The primary objective of a monetary appraisal is development of a numerical result and must be developed objectively and without bias. It is unrelated to the desires, wishes, or needs of the client who engages the appraiser to perform the work.

 

The appraiser's primary obligation to his/her client is to reach complete, accurate, and credible conclusions and numerical results regardless of the client's wishes or instructions in this regard. The relationship between client and appraiser is not one of principal and agent. However, the appraiser's obligation to his/her client goes somewhat beyond this primary obligation. These secondary obligations are set forth in the following sections.

 

1.21 The term appraisal practice, as defined by the American Society of Appraisers, applies to any of the following operations that are executed within a framework of general principles of technical procedure and personal conduct:

 

• Develop a credible opinion of the value of property on the basis of research and analysis according to current professional methodology

• Forecasting of the earning power of property

• Estimation of the cost of property

• Production of a new property

• Replacement of an existing property by purchase or production of an equivalent property

• Reproduction of an existing property by purchase or production of an identical property

• Determining non-monetary benefits or characteristics that contribute to value

• The rendering of judgments as to age, remaining life, condition, quality, or authenticity of physical property, amenities; an estimate of the amount of a natural resource, population increase, nature of market, rate of absorption, etc.

 

What is an appraisal?

 

An appraisal is a thought process leading to a value conclusion.

 

What does an appraiser do?

 

The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions.

 

Why would a person need a home appraisal?

 

There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

 

To obtain a loan.

To lower your tax burden.

To establish the replacement cost of insurance.

To contest high property taxes.

To settle an estate.

To provide a negotiating tool when purchasing real estate.

To determine a reasonable price when selling real estate.

To protect your rights in a condemnation case.

Because a government agency such as the IRS requires it.

If you are involved in a lawsuit.

 

What is the difference between an appraisal and a home inspection?

 

The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

 

What does the appraisal report contain?

 

Each report must reflect a credible estimate of value and must identify the following:

The client and other intended users.

The intended use of the report.

The purpose of the assignment.

The type of value reported and the definition of the value reported.

The effective date of the appraiser’s opinions and conclusions.

Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items

All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Division of interest, such as fractional interest, physical segment and partial holding.

The scope of work used to complete the assignment.

 

After completing the report, what assurance is there that the information is valid?

In communicating an appraisal report, each appraiser must ensure the following:

 

That the information analysis utilized in the appraisal was appropriate.

That significant errors of omission or commission were not committed neither individually nor collectively.

That appraisal services were not rendered in a careless or negligent manner.

That a credible, supportable appraisal report was communicated.

 

 

Who has ownership of the completed appraisal report?

 

According to a statement within the Uniform Standards Of Professional Appraisal Practice (USPAP) on Appraisal Standards No.9 (SMT-9), the person who engages the service of the appraiser is the client. Therefore the completed appraisal report belongs to that person. Payment is not a determining factor in the ownership of the completed report.

 

Lenders are required by the Equal Credit Opportunity Act to furnish a copy of the appraisal to the borrower, if the borrower request a copy in writing. To obtain a copy of the appraisal report contact the lender directly.

 

How are appraisers certified?

 

Each state has established its own requirements for appraisers to be licensed or certified to appraise real property. State Appraisal Regulatory Agencies

 

 

For Expert Appraisal Services You Can Trust Us

ACCURATE APPRAISALS USA

APPRAISAL FAQ

Objectives of Appraisal Work

INTEGRITY * EXCELLENCE * COMPLIANCE

Objectives of Appraisal Work

 

An appraisal is undertaken to accomplish several objectives:

 

1. develop an opinion of value of a property

2. estimate the cost of producing, acquiring, altering, or completing a property

3. estimate the monetary amount of damages to a property

4. forecast the monetary earning power of a property

 

In specific instances, the work may have additional objectives, such as: the formulation of conclusions and recommendations or the presentations of alternatives (and their consequences) for the client's actions.

 

Objective Character of the Results of an Appraisal Undertaking

 

The primary objective of a monetary appraisal is development of a numerical result and must be developed objectively and without bias. It is unrelated to the desires, wishes, or needs of the client who engages the appraiser to perform the work.

 

The appraiser's primary obligation to his/her client is to reach complete, accurate, and credible conclusions and numerical results regardless of the client's wishes or instructions in this regard. The relationship between client and appraiser is not one of principal and agent. However, the appraiser's obligation to his/her client goes somewhat beyond this primary obligation. These secondary obligations are set forth in the following sections.

 

1.21 The term appraisal practice, as defined by the American Society of Appraisers, applies to any of the following operations that are executed within a framework of general principles of technical procedure and personal conduct:

 

• Develop a credible opinion of the value of property on the basis of research and analysis according to current professional methodology

• Forecasting of the earning power of property

• Estimation of the cost of property

• Production of a new property

• Replacement of an existing property by purchase or production of an equivalent property

• Reproduction of an existing property by purchase or production of an identical property

• Determining non-monetary benefits or characteristics that contribute to value

• The rendering of judgments as to age, remaining life, condition, quality, or authenticity of physical property, amenities; an estimate of the amount of a natural resource, population increase, nature of market, rate of absorption, etc.

 

What is an appraisal?

 

An appraisal is a thought process leading to a value conclusion.

 

What does an appraiser do?

 

The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions.

 

Why would a person need a home appraisal?

 

There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

 

To obtain a loan.

To lower your tax burden.

To establish the replacement cost of insurance.

To contest high property taxes.

To settle an estate.

To provide a negotiating tool when purchasing real estate.

To determine a reasonable price when selling real estate.

To protect your rights in a condemnation case.

Because a government agency such as the IRS requires it.

If you are involved in a lawsuit.

 

What is the difference between an appraisal and a home inspection?

 

The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

 

What does the appraisal report contain?

 

Each report must reflect a credible estimate of value and must identify the following:

The client and other intended users.

The intended use of the report.

The purpose of the assignment.

The type of value reported and the definition of the value reported.

The effective date of the appraiser’s opinions and conclusions.

Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items

All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Division of interest, such as fractional interest, physical segment and partial holding.

The scope of work used to complete the assignment.

 

After completing the report, what assurance is there that the information is valid?

In communicating an appraisal report, each appraiser must ensure the following:

 

That the information analysis utilized in the appraisal was appropriate.

That significant errors of omission or commission were not committed neither individually nor collectively.

That appraisal services were not rendered in a careless or negligent manner.

That a credible, supportable appraisal report was communicated.

 

 

Who has ownership of the completed appraisal report?

 

According to a statement within the Uniform Standards Of Professional Appraisal Practice (USPAP) on Appraisal Standards No.9 (SMT-9), the person who engages the service of the appraiser is the client. Therefore the completed appraisal report belongs to that person. Payment is not a determining factor in the ownership of the completed report.

 

Lenders are required by the Equal Credit Opportunity Act to furnish a copy of the appraisal to the borrower, if the borrower request a copy in writing. To obtain a copy of the appraisal report contact the lender directly.

 

How are appraisers certified?

 

Each state has established its own requirements for appraisers to be licensed or certified to appraise real property. State Appraisal Regulatory Agencies

 

 

For Expert Appraisal Services You Can Trust Us

ACCURATE APPRAISALS USA

APPRAISAL FAQ

Objectives of Appraisal Work

INTEGRITY * EXCELLENCE * COMPLIANCE

Objectives of Appraisal Work

 

An appraisal is undertaken to accomplish several objectives:

 

1. develop an opinion of value of a property

2. estimate the cost of producing, acquiring, altering, or completing a property

3. estimate the monetary amount of damages to a property

4. forecast the monetary earning power of a property

 

In specific instances, the work may have additional objectives, such as: the formulation of conclusions and recommendations or the presentations of alternatives (and their consequences) for the client's actions.

 

Objective Character of the Results of an Appraisal Undertaking

 

The primary objective of a monetary appraisal is development of a numerical result and must be developed objectively and without bias. It is unrelated to the desires, wishes, or needs of the client who engages the appraiser to perform the work.

 

The appraiser's primary obligation to his/her client is to reach complete, accurate, and credible conclusions and numerical results regardless of the client's wishes or instructions in this regard. The relationship between client and appraiser is not one of principal and agent. However, the appraiser's obligation to his/her client goes somewhat beyond this primary obligation. These secondary obligations are set forth in the following sections.

 

1.21 The term appraisal practice, as defined by the American Society of Appraisers, applies to any of the following operations that are executed within a framework of general principles of technical procedure and personal conduct:

 

• Develop a credible opinion of the value of property on the basis of research and analysis according to current professional methodology

• Forecasting of the earning power of property

• Estimation of the cost of property

• Production of a new property

• Replacement of an existing property by purchase or production of an equivalent property

• Reproduction of an existing property by purchase or production of an identical property

• Determining non-monetary benefits or characteristics that contribute to value

• The rendering of judgments as to age, remaining life, condition, quality, or authenticity of physical property, amenities; an estimate of the amount of a natural resource, population increase, nature of market, rate of absorption, etc.

 

What is an appraisal?

 

An appraisal is a thought process leading to a value conclusion.

 

What does an appraiser do?

 

The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions.

 

Why would a person need a home appraisal?

 

There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

 

To obtain a loan.

To lower your tax burden.

To establish the replacement cost of insurance.

To contest high property taxes.

To settle an estate.

To provide a negotiating tool when purchasing real estate.

To determine a reasonable price when selling real estate.

To protect your rights in a condemnation case.

Because a government agency such as the IRS requires it.

If you are involved in a lawsuit.

 

What is the difference between an appraisal and a home inspection?

 

The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

 

What does the appraisal report contain?

 

Each report must reflect a credible estimate of value and must identify the following:

The client and other intended users.

The intended use of the report.

The purpose of the assignment.

The type of value reported and the definition of the value reported.

The effective date of the appraiser’s opinions and conclusions.

Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items

All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Division of interest, such as fractional interest, physical segment and partial holding.

The scope of work used to complete the assignment.

 

After completing the report, what assurance is there that the information is valid?

In communicating an appraisal report, each appraiser must ensure the following:

 

That the information analysis utilized in the appraisal was appropriate.

That significant errors of omission or commission were not committed neither individually nor collectively.

That appraisal services were not rendered in a careless or negligent manner.

That a credible, supportable appraisal report was communicated.

 

 

Who has ownership of the completed appraisal report?

 

According to a statement within the Uniform Standards Of Professional Appraisal Practice (USPAP) on Appraisal Standards No.9 (SMT-9), the person who engages the service of the appraiser is the client. Therefore the completed appraisal report belongs to that person. Payment is not a determining factor in the ownership of the completed report.

 

Lenders are required by the Equal Credit Opportunity Act to furnish a copy of the appraisal to the borrower, if the borrower request a copy in writing. To obtain a copy of the appraisal report contact the lender directly.

 

How are appraisers certified?

 

Each state has established its own requirements for appraisers to be licensed or certified to appraise real property. State Appraisal Regulatory Agencies

 

 

For Expert Appraisal Services

You Can Trust Us

© 2017 Accurate Appraisals USA     Site designed by: Creative Admark

ACCURATE APPRAISALS USA

APPRAISAL FAQ

Objectives of Appraisal Work

INTEGRITY * EXCELLENCE * COMPLIANCE

Objectives of Appraisal Work

 

An appraisal is undertaken to accomplish several objectives:

 

1. develop an opinion of value of a property

2. estimate the cost of producing, acquiring, altering, or completing a property

3. estimate the monetary amount of damages to a property

4. forecast the monetary earning power of a property

 

In specific instances, the work may have additional objectives, such as: the formulation of conclusions and recommendations or the presentations of alternatives (and their consequences) for the client's actions.

 

Objective Character of the Results of an Appraisal Undertaking

 

The primary objective of a monetary appraisal is development of a numerical result and must be developed objectively and without bias. It is unrelated to the desires, wishes, or needs of the client who engages the appraiser to perform the work.

 

The appraiser's primary obligation to his/her client is to reach complete, accurate, and credible conclusions and numerical results regardless of the client's wishes or instructions in this regard. The relationship between client and appraiser is not one of principal and agent. However, the appraiser's obligation to his/her client goes somewhat beyond this primary obligation. These secondary obligations are set forth in the following sections.

 

1.21 The term appraisal practice, as defined by the American Society of Appraisers, applies to any of the following operations that are executed within a framework of general principles of technical procedure and personal conduct:

 

• Develop a credible opinion of the value of property on the basis of research and analysis according to current professional methodology

• Forecasting of the earning power of property

• Estimation of the cost of property

• Production of a new property

• Replacement of an existing property by purchase or production of an equivalent property

• Reproduction of an existing property by purchase or production of an identical property

• Determining non-monetary benefits or characteristics that contribute to value

• The rendering of judgments as to age, remaining life, condition, quality, or authenticity of physical property, amenities; an estimate of the amount of a natural resource, population increase, nature of market, rate of absorption, etc.

 

What is an appraisal?

 

An appraisal is a thought process leading to a value conclusion.

 

What does an appraiser do?

 

The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions.

 

Why would a person need a home appraisal?

 

There are many reasons to obtain an appraisal with the most common reason being real estate and mortgage transactions. Other reasons for ordering an appraisal include:

 

To obtain a loan.

To lower your tax burden.

To establish the replacement cost of insurance.

To contest high property taxes.

To settle an estate.

To provide a negotiating tool when purchasing real estate.

To determine a reasonable price when selling real estate.

To protect your rights in a condemnation case.

Because a government agency such as the IRS requires it.

If you are involved in a lawsuit.

 

What is the difference between an appraisal and a home inspection?

 

The appraiser is not a home inspector nor does he/she do a complete home inspection. An inspection is a third-party evaluation of the accessible structure and mechanical systems of a house, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

 

What does the appraisal report contain?

 

Each report must reflect a credible estimate of value and must identify the following:

The client and other intended users.

The intended use of the report.

The purpose of the assignment.

The type of value reported and the definition of the value reported.

The effective date of the appraiser’s opinions and conclusions.

Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued, and Non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items

All known: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Division of interest, such as fractional interest, physical segment and partial holding.

The scope of work used to complete the assignment.

 

After completing the report, what assurance is there that the information is valid?

In communicating an appraisal report, each appraiser must ensure the following:

 

That the information analysis utilized in the appraisal was appropriate.

That significant errors of omission or commission were not committed neither individually nor collectively.

That appraisal services were not rendered in a careless or negligent manner.

That a credible, supportable appraisal report was communicated.

 

 

Who has ownership of the completed appraisal report?

 

According to a statement within the Uniform Standards Of Professional Appraisal Practice (USPAP) on Appraisal Standards No.9 (SMT-9), the person who engages the service of the appraiser is the client. Therefore the completed appraisal report belongs to that person. Payment is not a determining factor in the ownership of the completed report.

 

Lenders are required by the Equal Credit Opportunity Act to furnish a copy of the appraisal to the borrower, if the borrower request a copy in writing. To obtain a copy of the appraisal report contact the lender directly.

 

How are appraisers certified?

 

Each state has established its own requirements for appraisers to be licensed or certified to appraise real property. State Appraisal Regulatory Agencies

 

 

For Expert Appraisal Services

You Can Trust Us

 > Services

 > Fees

 > FAQ

 > About

 > Contact

© 2017 Accurate Appraisals USA     Site designed by: Creative Admark