Real estate appraisal
Posted on:3/30/2006
| A real estate appraisal is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property. |
A real estate appraisal is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property. The highest and best use is that use which produces the highest possible value for the property. This use must be profitable and probable. Also of importance is the definition of the type of value being developed and this must be included in the appraisal, ie fair market value, condemnation value, quick sale value, etc. Typically, this value is reported on a standardized form, the Uniform Residential Appraisal Report.
In the UK, real estate appraisal is known as property valuation and a real estate appraiser is a property valuation surveyor. Property valuation in the UK is regulated by the Royal Institution of Chartered Surveyors (RICS), a professional body encompassing all of the building and property-related professions. The RICS professional guidelines for valuers are published in the Red Book.
The reader should be aware that differences in nomenclature exist between the different countries. Although the overall concepts are very similar, the reader should be careful to ascertain that the proper nomenclature is being used for their particular area.
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