7 steps in the appraisal process 14 Flashcards

• steps in the appraisal process 14 Flashcards
• Collect and analyze dataGeneral data: National, Regional, City, neighborhood,

economic, social, governmentSpecific Data: subject

property and comparable properties physical characteristics, income and expense info, land value and cost of improvements

• estimate land value5. Use the 3 approaches
• Plan the appraisalDevelop a planIdentify the data neededIdentify data

sourceDevelop a time schedule

• Define the process or purposeWhat type of value is

being sought?Identify real estate (subject property)Identify the problemDate of valueAppraisal objection (purchase, refinance,)Definition of value (cost & equity to not determine value) The appraiser analyzes the facts and results from the 3 approaches and uses professional judgment to form an opinion of value

• Prepare Appraisal report

Sales comparisonCostIncome6. Reconcile the valuation approach