Real Estate Appraisal
Why Choose First Appraisal Group, Inc.?
Our appraisers have years of experience with many different property types, ownership interests (fee simple, leased fee, leasehold, and easement), and market areas within Indiana.
Every assignment begins with a written proposal that includes a fee for our service. Contact us to discuss your unique valuation question.
What is an Appraisal?
An appraisal is simply a professional opinion of the value.
“Implicit in the traditional definition of appraisal is the idea that an appraisal is someone’s opinion, rather than a fact. A useful way to think about what an appraisal is would be to look more closely at the people who develop those opinions of value. While anyone can have an opinion of value, appraisers are professionals with training and expertise in accepted valuation methods and techniques who have an ethical obligation to remain disinterested and unbiased while performing an appraisal.” The Appraisal or Real Estate, 15th Edition (The Appraisal Institute).
Licensing & Standards
In the United States, appraisers are state-licensed. Learn more about licensing here: Appraisal Institute Become an Appraiser. Real estate appraisers use their knowledge, experience, and training to develop opinions of value. Their opinions must be objective, impartial, and unbiased. State-licensed and Certified Appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Find more on USPAP here: Uniform Standards of Professional Appraisal Practice (USPAP) (appraisalfoundation.org)
Appraisal Reporting
When reporting written assignment results, appraisers have two options: an appraisal report and a restricted appraisal report. A restricted appraisal report states the appraiser’s findings and conclusions with little detail. Details are held in the appraiser’s work file. This type of report is only appropriate in certain situations and for certain uses. An appraisal report includes a detailed description of the appraiser's findings and conclusions and includes supporting data and written analysis. The appraisal process is the same for both report types.
What is an Appraisal Review?
An appraisal review follows a systematic review process to form an opinion of the work under review in each of the following areas.
Completeness
Accuracy
Adequacy
Relevance
Reasonableness
The review process can also require that the reviewer develop their own opinion of value. We complete appraisal reviews for government agencies, property owners, attorneys, and others.
The Valuation Process
The valuation process is a systematic process and procedure that an appraiser follows to address the client’s needs or questions. The depth of the analysis and subsequent report, also referred to as the Scope of Work, depends on a number of factors including the intended use of the appraisal, the property type, the highest and best use of the property, and the market area (availability of data).
There are three approaches to value: The Cost Approach, The Sales Comparison Approach, and the Income Approach.
It is acceptable to complete one or all, depending on the property and scope of work.
The Cost Approach
The Sales Comparison Approach
The Income Approach
Approaches to Value
The Valuation Process