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Rates as
Low as 3.9% |
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Lowest
closing cost Guaranteed |
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60 Seconds
Approval |
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Appraisal
Basics
Appraisal
Methods
When To Order an
Appraisal
Appraisal To
Establish Home Market Price
Appraisal To Obtain A
Loan
Helping The Appraiser
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Appraisal Methods
An
appraisal is an opinion of value or the act or
process of estimating value. This opinion or
estimate is derived by using three common
approaches, all derived from the market. They are:
1. Cost
Approach to value is what it would cost
to replace or reproduce the improvements as of the
date of the appraisal, less the Physical
Deterioration, the Functional Obsolescence and the
Economic Obsolescence. The remainder is added to
the Land Value.
2.
Comparison Approach to value
makes use of other "bench mark" properties of
similar size, quality and location that have been
recently sold. A comparison is made to the subject
property.
3. Income
Approach to value is of primary
importance in ascertaining the value of income
producing properties and has little weight in
residential type properties. This approach
provides an objective estimate of what a prudent
investor would pay based upon the net income the
property produces.
Then, after thorough
analysis of all general and specific data gathered
from the market, a final estimate or opinion of
value is correlated. |
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