What is an Appraisal?
An Appraisal is a professional appraiser's opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience and professional judgment of the appraiser.
What are the components of an appraisal report?
Most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its locale; an analysis of the "highest and best use" of the the property; an analysis of sales of comparable properties "as near the subject property as possible"; and information regarding current real estate activity and/ or market area trends; an analysis of income potential; resulting in a value conclusion.