What is an Appraisal ?

An appraisal is generally described an opinion of value express by a licensed appraiser for a specific client and for a specific purpose.  An appraisal can be verbal or written, it is usually developed by following a process that considers the three appraisal methodologies; the cost approach, the sales approach and the income approach.  A final "point" value opinion is concluded base on a reconciliation of the three approaches.

Appraisals are completed for a wide range of purposes, but most often for financing purposes.  Since real estate is often used as collateral, it is important for a lender to establish the market value of the real property prior to making a loan.  Appraisals are also used for other purposes including; estate valuation (IRS), court cases (civil, divorce, condemnation and bankruptcy), partnership formation / dissolution, for exchanges, for acquisition / disposition and for a number of other purposes.    

Other types of value, like investment value, are also opined by appraisers based on the request of their clients, however market value is the value opinion most often requested.  The definition of market value used in a report is very important to the appraisal process, since a definition that indicates non-market terms can be significantly different from one that does rely on the market.

Thus, standard market value definitions are used in most appraisal reports.  Each appraisal report is required by the Uniform Standards of Professional Appraisal Practice (USPAP) to list its market value definition. 

As discussed, an appraisal reports can be written or verbal, although they are usually provided in a written format.  They can be self-contained reports with full detail included within them, written in a summary format or that can at times be provided to a client for a restricted use. 

Contact us with your questions or concerns regarding appraisals or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.