What Is an Appraiser?
The term appraiser refers to a professional who determines the market value of an asset, notably in the real estate industry. An appraiser is expected to act independently of the buying and selling parties in a transaction. Their opinion about the real and fair value of an appraised asset must be unbiased by using observations as well as relevant statistics, facts, and other information. Depending on the circ*mstances, the appraiser presents their findings in a written or verbal appraisal.
How Appraisers Work
Appraisers attempt to attach a dollar value to items such as jewelry, art, gems, and family heirlooms. But their services are mainly used to determine real estate values. Investors generally hold an appraiser's work in high regard because of the lack of liquidity associated with assets such as these items.
All appraisers are expected to be alert and take notice of every aspect and characteristic that affects the value of an asset. In the case of real estate, for instance, this may include assessing things like the overall noise levels of the area, the proximity of the property to sources of recurring loud disturbances such as an airport or a railroad line, as well as the view offered by the property. Obstructions by neighboring buildings may also affect the value of a property and the general condition of the building and grounds will also be taken into consideration.
After collecting and documenting the information from their findings of the asset, appraisers may then use that information to compare the asset to other similar pieces of property that were sold recently. They may also take prior appraisals of the same property into account. Once compiled, an appraisal may be presented either in writing or verbally to the client.
People and businesses generally seek out the services of appraisers when they simply wish to get a value on a piece of property or when they want to sell an asset. Appraisals may be a requirement before an asset is sold—as is the case with real estate—and for regular evaluations by municipalities for property taxes.
Key Takeaways
- An appraiser is a professional who determines the market value of an asset such as jewelry, art, gems, family heirlooms, and real estate.
- All appraisers must act independently of the buying and selling parties, and their opinions must be unbiased.
- Appraiser services are used when someone wants to get an evaluation for an asset or wants to sell it.
- Municipalities use appraisers to help determine property taxes.
Special Considerations
Most appraisers—especially those who work with real estate—must be licensed by their state in order to practice their profession. This means having a certain degree of education and experience, and taking and passing an exam by the state licensing board.
Many appraisers—especially those who work with real estate—must be licensed in their state.
Appraisers spend their time determining the value of one asset at a time, especially when it comes to real estate. Building up their expertise in making their assessments often leads appraisers to specializein a particular area of real estate. For example, a commercial real estate appraiser may focus on the market for office buildings, hotels, retail locations, and other properties that include an income generating quality. Meanwhile, a residential appraiser focuses on those properties where individuals and households are domiciled. This can include condominiums and single homes. A residential appraiser typically works with properties that have no more than four housing units. Larger scale properties, such as multiunit apartment buildings, would likely be classified as a commercial property for the purposes of an appraiser.
FAQs
Appraisers collect, verify, and interpret all relevant data that could affect a property's valuation. Following Market Trends: Local and regional real estate market trends impact a property's value. Estate appraisers must stay current on trends and understand how those trends might affect property.
What is the job description of an appraiser? ›
Appraisers assess the value of a property after a thorough inspection, by researching comparable homes, properties, buildings, public records, legal descriptions, and tax records. They analyze the collected data to determine the current property's value and potential future value.
What are the three main methods appraisers use to appraise real estate? ›
Traditional Approaches to Value
However, all three are not always employed, depending upon the property type and the process and report type agreed to by the client and the appraiser. The approaches to value are: Sales Comparison (or Market Data) Approach; Cost Approach; and Income Approach.
What is an appraisal summary? ›
As stated earlier, an Appraisal Report is comprised of statements or a summary of the steps taken to arrive at the final opinion of value. USPAP provides guidance to appraisers as well as regulations that ensure appraisers complete a fair and unbiased analysis.
What is the best way to describe an appraisal? ›
An appraisal is a valuation of property, such as real estate, a business, collectible, or an antique, by the estimate of an authorized person.
What skills do appraisers need? ›
Important Qualities
- Analytical skills. Property appraisers and assessors use many sources of data when estimating values. ...
- Customer-service skills. ...
- Math skills. ...
- Organizational skills. ...
- Problem-solving skills. ...
- Time-management skills.
An appraiser resume summary or objective should highlight your qualifications, such as your knowledge of market trends, your ability to assess property values, and your attention to detail. It should also give a sense of your personality and enthusiasm for the position.
What is the most common appraisal approach? ›
Sales comparison.
This is the most common method, where appraisers value a property based on the recent selling prices of similar properties in the same neighborhood.
What are the four 4 forms of the appraisal? ›
Performance appraisals can be broken down into four distinct significant types:
- 360-Degree Appraisal. The manager gathers information on the employee's performance, typically by questionnaire, from supervisors, co-workers, group members, and self-assessment.
- Negotiated Appraisal. ...
- Peer Assessment. ...
- Self-Assessment.
The BARS method is the most preferred performance appraisal method as it enables managers to gauge better results, provide constant feedback and maintain consistency in evaluation.
This might include numbers of hours/ sessions worked, and personal areas of leadership and responsibility. Highlights of the year – achievements and successes. Challenges and issues that have arisen. Evidence based positive attribute statements.
How to write an appraisal sample? ›
Write short and precise appraisals with minimal word count. Identify your weaknesses and mention the training and support you need from the organization to address them. Mention your achievements and share how you approached the tasks. Substantiate them with numerical data wherever possible.
What negatively affects a home appraisal? ›
Outdated Systems, Appliances and Interiors
If the interior hasn't been changed for decades, it may not appeal to buyers, which can also cause the value to decrease. Outdated features like these could also signal that the home has not been taken care of properly and more issues might lie beneath.
Do appraisers look under sinks? ›
Yes, the appraiser will look under your sinks to ensure there isn't any water damage or problems hiding. No need to clear out any under-sink storage but do make sure it is clean and accessible. If there is no damage, this won't harm your home appraisal.
What is the function of the appraiser? ›
The role of the appraiser is to provide objective, impartial, and unbiased opinions about the value of real property—providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real estate.
What are the roles and responsibilities of the appraisal process? ›
It is the task of HR managers to ensure that appraisal is given to all the deserving employees. The appraisal should be fair. While assessing the performance, apart from daily duties, behavior, punctuality and the relation of the employee with other co-workers should is also considered for the appraisal process.
What is the main task of the appraiser in the appraisal process? ›
The Property Appraiser is responsible for identifying the market value of property in the county. In reality, the market value is determined by the economy. Your Property Appraiser estimates the market value of the property.
What is the first thing an appraiser does? ›
The first step is the appraisal inspection, where appraisers traditionally review the home's interior and exterior to make sure it is in sound structural shape, confirm that there aren't any safety issues, note the number of rooms, and see if there have been any major upgrades or renovations since the last real estate ...
