Purpose Of The Appraisal
The reason a property appraisal is being made. The purpose of the appraisal is the first step in the appraisal process. The purpose of the appraisal should answer several questions:
- What specific problem will the appraisal resolve? If the purpose of the appraisal is to determine property value for the purpose of acquiring a bank loan or mortgage, then the appraisal will focus on long term property value trends in the region.
- If the appraisal is being used for the value insurance of the property, then replacement cost is a primary consideration.
- Will appraisal assist in determining the price to be paid for certain piece of property? If this is the case, then the appraisal should on comparable sales as carefully appraising specific features and improvements made to the property in question.
- If the major purpose of the appraisal is for the purpose of tax assessment, then comparable values of similar properties is the main interest of the appraisal.
- Is the appraisal to be used in a public condemnation process or a sale resulting from a divorce? If this is the purpose, then the appraisal should focus on recent sales of similar properties not involved in a forced sale.
Popular Real Estate Terms
Street terminating at one end with only one outlet. A dead end street is not a through street. See also cul de sac. ...
A major factor in depreciation resulting from wear and tear from use and natural deterioration through interaction of weather elements may cause depreciation to a structure. ...
The net operating income definition is the total profit generated by a business or real estate development after the necessary operating expenses are taken out. In order to determine the ...
Legal abbreviation meaning with husband. ...
Evaluating a locality to determine its value and appropriateness for designated objectives. ...
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...
Amount a manger of real estate receives for his efforts. For example, a manger is to receive 2% of rentals collected as compensation from the landlord to manage the property. If the ...
Span of time a rental agreement is free to the occupant. A landlord may offer this as an incentive to stimulate rentals. For example, an owner of an office building may provide a free ...
Relationship between individuals or entities whereby rights given to one are returned in kind to the other. An example is where one person has the right to use facilities of another with ...
Have a question or comment?
We're here to help.