An appraisal is a professional appraiser's opinion of value of a particular property. The preparation of a real estate appraisal involves research into a neighborhood, region, or a certain market area; the assembly and analysis of information about a property; and the knowledge, experience, and professional judgment of the appraiser. Appraisals may be required for any type of property, including single-family homes, apartment buildings and condominiums, office buildings, retail stores, shopping centers, industrial sites, and farms. The reasons for performing a real property appraisal are just as varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. For example, appraisals are prepared for:
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. Appraisers assemble a series of facts, statistics, and other information regarding specific properties, analyze this data, and develop opinions of value. Each appraisal assignment challenges the appraiser's ability to put analytical skills into practice, exercise sound judgment, and communicate effectively.
There are two main categories of real estate (real property) appraisers:
As with all states, the Commonwealth of Pennsylvania requires appraisers to be state licensed in order to provide appraisals to federally regulated lenders (most banks and mortgage companies) and other clients. To become licensed or certified, appraisers must pass an examination that is administered by the State Board of Certified Real Estate Appraisers. At the national level the Appraiser Qualifications Board (AQB) of The Appraisal Foundation is authorized by Congress to establish the minimum requirements for Certified General Real Property Appraiser and Certified Residential Real Property Appraiser classifications.
Appraisers must have fulfilled rigorous education and experience requirements to become licensed, and. they are required to take approved continuing education courses in order to maintain their licenses.
To protect your financial well being and your investments, it is important that you engage a valuation professional. Whether it is real estate, a business, or personal property, consumers should engage a professional appraiser for an independent and impartial analysis of their property. Appraisers must adhere to strict standards and a code of professional ethics. Following an established code of conduct focusing on conduct and ethics, such as the Uniform Standards of Professional Appraisal Practice (USPAP), is a cornerstone of a professional appraiser.
Appraisers adhere to a written set of performance standards known as the Uniform Standards of Professional Appraisal Practice (USPAP). The U.S. Congress has recognized USPAP as the generally accepted set of standards for professional appraisal practice in the United States. By following USPAP an appraiser helps foster public trust in valuation through:
Most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its locale; an analysis of the “highest and best use” of the property; an analysis of sales of comparable properties “as near the subject property as possible”; and information regarding current real estate activity and/or market area trends. The value indicated by recent sales of comparable properties, the current cost of reproducing or replacing a building, and the value that the property’s net earning power will support are the most important considerations in the valuation of real estate property.
In addition to residential and/or commercial appraisals — and depending upon an appraiser’s designation and qualifications — he or she can provide or assist with some or all of the following:
The following questions would be appropriate:
Mark Heckman Real Estate Appraisers
1309 Bridge Street, New Cumberland, PA 17070 - Phone: (717) 774-7202 Fax: (717) 774-0383
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