Appraisal could be described as follows:
- a written provision of a valuation, combined with professional opinion, advice and/or analysis relating to the suitability or profitability or otherwise of the subject properly for defined purposes, or to the effects of specified circumstances thereon as judged by the Valuer following the relevant investigation.
- the estimate of opinion of value. It is the evaluation of the nature, quality or utility of developable land; or any interest in or aspect of real property. It is the solution or conclusion concerning any real estate problem. The result or conclusion derived from the appraisal may be informal transmitted orally or may be formally presented in written form.
- an expert’s judgement or the estimation of the value of quality of a real estate made by a qualified professional (Title appraiser) as of a given date and for a specific purpose. This appraisal is usually done after the property or the real estate has been inspected.
- a written statement setting forth the opinions or conclusion of the Valuer concerning an adequately described property as of a specified date supported by the presentation and analysis of relevant date. It is an estimate of quality, quantity or value.
- the process, through which conclusion of property values are obtained, also referred to as appraisal.
When carrying out appraisal, the bases of the appraisal must be known, the source of data, hot to collect data and also analysis of the data is carried out. It can be carried out as:
- Appraisal capitalisation: This is designed for use with properties that are productive that are expected to yield an even flow of land rents year after year into the future. It involves the determination of the market value of a property, which should be equal to the property worth of all its future incomes.
- Appraisal by comparison: This involves the appraiser studying the condition and process associated with the sale of comparable properties and value the property he is appraising in terms of the price he feels it would bring in the current market.
More definitions of Appraisal on the Web:
- An estimate of a property’s value as of a given date, determined by a qualified professional appraiser. The value may be based on replacement cost, the sales of comparable properties or the property’s ability to produce income – ginniemae.gov/ypth/resources/ mortgage_terms.htm
- 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 – hud.gov/offices/hsg/sfh/buying/ glossary.cfm
- An estimation of the value of a property on a certain date given by a qualified person, usually after an inspection of the property – websiteupgrades.com/glossary/free/
- An estimate of the value of property, made by a qualified professional called an “appraiser.” Most states require licenses. Various lenders have their own lists of approved appraisers – home-mortgage-rate-now.com/terms.html
