Real Estate Appraisal is the analysis and study of a particular property’s value as at a specific effective date. Appraisal valuation dates can vary in time from a property’s current value, retrospective value and ‘as if complete’ hypothetical value (typically used for financing new construction projects).
There are 3 types of valuation methods:
The Direct Comparison Approach to Value – Otherwise known as Market Value where a property’s value is derived from comparable sales and competing listings.
The Income approach to Value – This involves analysis of a property’s cash flow, expenses, net operation income and capitalization rates. This method of valuation is most often used for commercial and income generating properties
The Cost Approach to Value -This type of valuation is generally used by insurance companies to a determine building(s) value based on replacement cost.
We can also provide different types of reports customized to your specific needs, such as:
Short narrative report (most commonly used for residential properties)
Full narrative reports (most often used for commercial reports and residential reports for litigation. A full narrative report provides a comprehensive analysis of all micro and macro factors that affect the subject property`s valuation)
Drive-by report –where there is no physical interior inspection of the property or buildings rather a `drive-by` of the subject property and street is completed and only a value range is provided
Desk-top report -where the appraiser relies on readily available information such as past MLS listings and only market data is provided