Appraisers frequently have their work reviewed, especially when an appraisal’s intended use is for financing. Reviewing appraisals is routinely part of the job description for appraisers employed by lending institutions. But the scope of work for review assignments varies significantly, and sometimes reviews are performed by non-appraisers. Both appraisers and their clients need to clearly […]
Land value analysis is an essential skill for appraisers, especially in scenarios where the sales comparison approach is hampered by a lack of truly comparable properties. While many residential appraisals don’t require the cost approach, there are cases where separate value opinions for land and improvements are necessary. Experienced appraisers recognize that some improved property
Property appraisal differences often occur when two appraisers analyze the same property but arrive at varying value conclusions. These differences can confuse appraisal users, but understanding the factors behind them can help determine which value estimate is more reliable. Appraisals of the same property by different appraisers are rarely the same. Differing value opinions are
Eminent domain in Massachusetts is a critical legal process where the government can take private property for public projects. Governed by both federal and state laws, this process requires offering property owners fair compensation. Appraisers play a vital role in valuing properties and ensuring just compensation during eminent domain proceedings. What is the process when
Low appraisals can disrupt real estate transactions, affecting buyers, sellers, and agents alike. Understanding the factors behind a low appraisal and the perspectives of those involved is crucial to navigating these challenges. Agents, investors, property owners and anyone riding on the results of an appraisal want the value to come out the way they expect,
Property Value vs. Construction Cost is one of the central questions in any real estate appraisal. Appraisers use various methods to estimate value, including the cost approach, which evaluates the actual cost of building a structure similar or identical to the subject property. However, construction cost is just one element of value and does not
Appraisal report forms play a crucial role in how appraisers communicate the results of their assignments. Whether through oral reports, written narratives, or standardized forms, appraisers have numerous options to meet client needs and comply with regulatory requirements. Appraisers have nearly unlimited possibilities in how they report the results of appraisal assignments. These choices could
Most improved real properties and many vacant tracts can only be sold subject to existing easements. Appraisers identify existing easements and consider their effect on value whenever a market value definition is part of an assignment. Easements and rights-of-way often influence how real property can be used and may even affect a property’s ownership cost.
Fixed and variable expenses are essential components of the income approach to property valuation. This method estimates the value of a property based on its annual income, assuming a relationship between the net income generated and the price an investor would pay. The first step in this approach is calculating the net income for a
A new appraisal is crucial for homeowners considering a tax abatement or financial institutions reviewing past property loans. Understanding the differences between a new appraisal and an appraisal update can help you make informed decisions regarding your real estate investments. Suppose you paid for an appraisal when you refinanced your property a couple of years