The Appraisal Overview
WHY AN APPRAISAL ?
A real estate appraisal is an important opinion of market value that can fulfill a number of client needs. There are innumerable reasons for an appraisal. They range from getting ready to sell, refinancing, appealing real estate taxes, removal of “private mortgage insurance (PMI)”, valuing the merits of an addition, valuing a lease, establishing a prospective market value for a structure to be built or converted, buying versus renting analysis, assisting in securing financing, settlement of an estate, settlement of martial dissolution, settlement for bankruptcy, court testimony, establishing partial value interest, establishing market value for condemnation, market study, feasibility study, review appraising and/or for consulting purposes.
The real estate appraisal is performed by a disinterested, professionally trained, third party appraiser who will provide an objective analysis of the property that will lead to an opinion of market value.
DO REAL ESTATE APPRAISALS FOLLOW ANY GUIDELINES ?
McLane Realty, Inc. and its appraisers are required by the licensing law of the State of Indiana to comply with the “Uniform Standards of Professional Appraisal Practice" (USPAP). This is required not only of licensed real estate appraisers but also applies to licensed real estate brokers who perform appraisals.
WHAT ARE THE FEES FOR A REAL ESTATE APPRAISAL ?
There are no set industry fees for a real estate appraisal. Real estate appraisal fees are set by the appraiser and client agreeing to an amount.
WHO IS ENTITLED TO RECEIVE AN APPRAISAL ?
McLane Realty, Inc. enters into an Engagement Agreement which will specify who is the client. The client decides who will receive the appraisal report. In the case of an appraisal where financing is involved with a state or federal regulated agency, the property owner or prospective property owner is entitled to receive a copy from the lender.
WHAT TYPE OF APPRAISAL REPORT WILL YOU, THE CLIENT, RECEIVE ?
The appraisal process encompasses more than the written report. The written report is the end product of the appraisal process. The type of written report is discussed between the client and the appraiser. The selection of the type of report depends on client needs. In the simplest terms the appraisal report can be “self contained” which is comprehensive level of detail, a “Summary” which provides some explanation or “Restricted” which just states minimal information. The report can be delivered to the client via electronic mail via Adobe Acrobat or by typical written format.
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