Real Estate Term of the Day: Appraisal Report & Appraised Value
APPRAISAL REPORT – a written explanation of a property’s value including the data and reasoning used to derive the appraised value. Almost all appraisal reports are provided in a written format (Barron’s Dictionary of Real Estate Terms)
An appraisal report will generally include:
- General information regarding the reason for the appraisal (if it is for a new purchase or a refinance)
- Local real estate market conditions, research & analysis
- Property improvements to the subject property, photos & neighborhood info
- Market approach analysis comparing similar sales to the subject property (usually between 3 – 6 sales)
- Map showing the subject property & proximity of the comparable sales used in the market approach analysis
- Photos of the comparable sales used in the market approach analysis
- Cost approach analysis
- Final market approach value and the cost approach value
Combining all of the above date will lead to the most important factor of the appraisal, which is the appraised value.
APPRAISED VALUE – the primary conclusion of an appraisal (Barron’s Dictionary of Real Estate Terms)
LESLIE MONACO REAL ESTATE 