Purpose Of The Appraisal
Definition of "Purpose of the appraisal"
The reason a property appraisal is being made. The purpose of the appraisal is the first step in the appraisal process. The purpose of the appraisal should answer several questions:
- What specific problem will the appraisal resolve? If the purpose of the appraisal is to determine property value for the purpose of acquiring a bank loan or mortgage, then the appraisal will focus on long term property value trends in the region.
- If the appraisal is being used for the value insurance of the property, then replacement cost is a primary consideration.
- Will appraisal assist in determining the price to be paid for certain piece of property? If this is the case, then the appraisal should on comparable sales as carefully appraising specific features and improvements made to the property in question.
- If the major purpose of the appraisal is for the purpose of tax assessment, then comparable values of similar properties is the main interest of the appraisal.
- Is the appraisal to be used in a public condemnation process or a sale resulting from a divorce? If this is the purpose, then the appraisal should focus on recent sales of similar properties not involved in a forced sale.
Popular Real Estate Terms
Document issued by a governmental agency permitting the recipient to do something. An example is a building permit to construct a structure. ...
Shingles having uniform length, but random width. Random shingles give a creative appearance to a roof. ...
Buyer who is acting in good faith, is not aware of any outstanding claims or rights of others to the property, and has given valuable consideration as part of the business transaction. ...
An agreement by which the owner of property (the lender) and a borrower agree to let the borrower use the property for a particular time period and in return the borrower will pay the ...
A lender can be a private individual, a private or public group, or an institution that loans funds to a person or business that the lendee would later repay with interest in most cases. In ...
Generally speaking, indemnity defines a legal principle and an ensuing agreement to calculate the amount of compensation a party is entitled to resulting from a specific financial loss they ...
Total expenditure to modernize a building to meet the owner's or tenant's needs. ...
The right to deviate from the use of land prescribed by an existing zoning ordinance. ...
The definition of the term right of way is an easement or the right of another person to pass over land owned by someone else to reach a particular destination. An individual is typically ...
Have a question or comment?
We're here to help.