An
appraisal of real estate is the valuation of the rights of ownership.
The appraiser must define the rights he intends to appraise.
The
appraiser does not create value, the appraiser interprets the market
to arrive at a value estimate. As the appraiser compiles data pertinent
to a report, consideration must be given to the site and amenities as
well as the physical condition of the property. An appraiser may spend
only a short time inspecting the property, however, this is only the
beginning.
Considerable
research and collection of general and specific data must be accomplished
before the appraiser can arrive at a final opinion of value.
Due
to the many types of value, such as Fair Market Value, Insurance Value,
Tax Value and Value In Use, the need to precisely define the purpose
of the appraisal is essential.
When To Order An Appraisal
