Real Estate Appraisals: Commercial and Residential
Appraisals are necessary for a variety of reasons including: financing, estate, divorce, financial planning, and more.
Appraisers establish a valuation of real estate by utilizing the three valuation techniques including: the Sales Comparison Approach, the Income Approach, and the Cost Approach. The Sales Approach determines the value of a property by examining similar properties on the open market; the Income Approach determines the value of a property based on its income stream, and the Cost Approach determines the value of a property based on the site value and the cost of constructing the improvements.
The valuation techniques are used to establish the type of value which is requested by the client. Examples of valuations established include Market Value, Insurable Value, Liquidation Value, or Retrospective Value.
Appraisals contain necessary information including:
Details about the property
Comparisons to similar properties
An analysis of the area's market conditions
Statements about issues the appraiser feels are harmful to the property's value
Notations about seriously flawed characteristics
An estimate of the average sales time for the property
The zoning district in which the building is located
Appraisers establish a valuation of real estate by utilizing the three valuation techniques including: the Sales Comparison Approach, the Income Approach, and the Cost Approach. The Sales Approach determines the value of a property by examining similar properties on the open market; the Income Approach determines the value of a property based on its income stream, and the Cost Approach determines the value of a property based on the site value and the cost of constructing the improvements.
The valuation techniques are used to establish the type of value which is requested by the client. Examples of valuations established include Market Value, Insurable Value, Liquidation Value, or Retrospective Value.