FAQs

The appraisal is the value of a property from a professional appraiser’s perspective and opinion, according to the USPAP (Uniform Standards of Professional Appraisal Practice). To make a relevant appraisal, one must conduct research in the market where the subject is located, gather and analyze information that is relevant to the property and have the knowledge, expertise, and professional discernment of a licensed appraiser. Real estate appraisals may be required when the property needs to be sold, mortgaged, insured, taxed or developed. Any type of property can be appraised including single-family homes, apartment buildings and condominiums, office buildings, shopping centers, industrial buildings and even land. Please see the Services Tab at the top of this Webpage for more examples of properties that can be appraised. The situations when an appraisal would be needed you includes, but is not limited to: preparing for mortgage lending purposes, tax assessment and appeals of assessment, when a buyer and a seller negotiate for a price, in the case of government acquisition of private property for public use, business mergers and dissolutions, lease negotiations etc.

A typical turn-around time for a commercial appraisal is two to three weeks. Dade Appraisals provides faster service for an additional fee.

Summary Appraisal Report

The Summary Appraisal Report will respect the requirements stated under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP) which concerns the above mentioned Summary Appraisal Report. As stated in its name, the report contains only the summarized data, reasoning and analysis which were used by the Appraiser to express his opinion of value in the appraisal process. Any other support documents that more thoroughly discuss the data, reasoning and analysis made can be found in the Appraiser’s file. The Summary Appraisal Report contains information specifically intended for the needs of the Client.

Self-Contained Appraisal Report

The Self-Contained Appraisal Report is used to fully describe the data and analyses used in the assignment, having all the appropriate information without any reference to the Appraiser’s file. A Self-Contained Appraisal Report is thorough enough to include the physical and economical characteristics of the real estate involved in the appraisal as well as a description of the information analyzed, the procedures followed in the appraisal of the property as well as the reasoning, which supports the analyses, opinions and conclusions of the process.

In the process of making the best and most relevant appraisal, an Appraiser will present his objective and unbiased opinion about the value of the property being appraised to assist the owners or prospective owners of the property to be able to make decisions to manage, sell, invest, and/or lend money on its security. To develop the opinion of value, the Appraiser will gather statistics, facts and other relevant information about the property, after which it will be analyzed  to determine it’s true value on the market. This process will push the capabilities of any appraisers testing their analytical skills, compelling them to deliver pertinent conclusions about the value of the subject property, while communicating efficiently with the Client.

An MAI is a designated Member of the Appraisal Institute, which is the highest level of accreditation in the industry.

A Green Building benefits from a comprehensive process of design and construction that employs techniques to minimize adverse environmental impacts and reduce the energy consumption of a building, while contributing to the health and productivity of its occupants. A common certification for for green buildings is LEED (Leadership in Energy and Environmental Design).

LEED or Leadership in Energy and Environmental Design is a registered system of rating for new buildings, interiors, and other components based on environmental effectiveness.

Educational requirements for real estate appraisers vary by state. Academic programs for aspiring real estate Appraisers vary from certificate programs to Associate's or Bachelor's degree programs. Course topics typically include appraisal principles and procedures, site valuation, cost approach, real estate law, and residential report writing. Requirements can also range depending on the value or types of properties. According to the U.S. Bureau of Labor Statistics (BLS), federal law mandates that real estate Appraisers be certified. States may also have their own licensing requirements. These requirements may vary in each state, so individuals pursuing this career should check with the state in which they wish to work.

Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and each acting in what he or she considers his/her own best interest;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

The Highest and Best Use (HBU) is a concept in real estate appraisals that shows how the highest value for a property is arrived at. In any case where the market value of real property is sought, that value must be based on its Highest and Best Use. It is always the use that would produce the highest value for a property, regardless of its actual and/or current use. The Appraisal Institute defines the Highest and Best Use as "the reasonably probable and legal use of property, that is physically possible, appropriately supported, and financially feasible, and that results in the highest value".

Appraisers use three (3) approaches to value in Appraisal Practice when determining the Market Value of a property, these include:

The Sales Comparison Approach

The most frequently-used and accepted approach to determining value in real estate appraisal practice is the Sales Comparison Approach. This approach to value bases its opinion of value on what similar properties (otherwise known as “comparable sales”) in close proximity to the subject property have sold for recently.

The Cost Approach

The second approach to determining the value of a property is the Cost Approach. This approach seeks to determine how much a property would cost to replace/rebuild after subtracting the damages of time as a result of wear and tear or obsolescence, also known as depreciation. The Cost Approach appraisal is frequently the only approach that is considered to be reliable when appraising special use properties such as commercial/industrial properties or public properties such as libraries, schools, or churches which are not traded on the open market.

Income Approach

The third approach to value is called the Income Approach. When a property generates income for its owner, that income or potential for income, helps to substantiate, calculate, or identify the market value of the property. Apartment buildings and duplexes are examples of income-producing properties. Appraisers use the income derived from the property as part of the assessment of the market value of the property.