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Appraiser Info
An appraiser
is one who sets a value upon property, real
or personal. In England the business of an
appraiser is usually combined with that of
an auctioneer.
In the United
States, the most common usage relates to
real estate appraisals, while the term is
often used to describe a person specially
appointed by a judicial authority to
put a valuation on property, e.g. on
the items of an inventory of the estate of a
deceased person or on land taken for public
purposes by the right of eminent domain.
Appraisers of imported goods and boards of
general appraisers have extensive functions
in administering the customs laws of the
United States. Merchant appraisers are
sometimes appointed temporarily under the
revenue laws to value where there is no
resident appraiser without holding the
office of appraiser.
Appraisers and
assessors of real estate estimate the value of real
property for a variety of purposes, such as to
assess property tax, to determine a sales price, or
to determine the amount of a mortgage that might be
granted on a property. They may be called on to
determine the value of any type of real estate,
ranging from farmland to a major shopping center,
although they often specialize in appraising or
assessing only a certain type of real estate such as
residential buildings or commercial properties.
Assessors determine the value of all properties in a
locality for property tax purposes whereas
appraisers appraise properties one at a time for a
variety of purposes, such as to determine what a
good sale price would be for a home or to settle an
estate or aid in a divorce settlement.
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Valuations of all types
of real property are
conducted using similar
methods, regardless of
the type of property or
who employs the
appraiser or assessor.
Appraisers and assessors
work in localities they
are familiar with so
they have a knowledge of
any environmental or
other concerns that may
affect the value of a
property. They note any
unique characteristics
of the property and of
the surrounding area,
such as a specific
architectural style of a
building or a major
highway located next to
the parcel. They also
take into account
additional aspects of a
property like the
condition of the
foundation and roof of a
building or any
renovations that may
have been done.
Additionally, they may
take pictures to
document a certain room
or feature, in addition
to taking pictures of
the exterior of the
building. After visiting
the property, the
appraiser or assessor
will determine the fair
value of the property by
taking into
consideration such
things as comparable
home sales, lease
records, location,
previous appraisals, and
income potential. They
will then put all of
their research and
observations together in
a detailed report,
stating not only the
value of the parcel but
the precise reasoning
and methodology of how
they arrived at the
estimate.
Appraisers have
independent clients and
focus solely on valuing
one property at a time.
They primarily work on a
client-to-client basis,
and make appraisals for
a variety of reasons.
Real property appraisers
often specialize by the
type of real estate they
appraise, such as
residential properties,
golf courses, or strip
malls. In general,
commercial appraisers
have the ability to
appraise any real
property but may
generally only appraise
property used for
commercial purposes,
such as stores or
hotels. Residential
appraisers focus on
appraising homes or
other residences and
only value those that
house 1 to 4 families.
Other appraisers have a
general practice and
value any type of real
property.
Assessors predominately
work for local
governments and are
responsible for valuing
properties so a tax
formula can be used to
assess property taxes.
Unlike appraisers,
assessors value entire
neighborhoods using mass
appraisal techniques to
value all the homes in a
local neighborhood at
one time. Although they
do not usually focus on
a single property they
may assess a single
property if the property
owner challenges the
assessment. They may use
a computer- programmed
automated valuation
model specifically
developed for their
assigned jurisdictions.
In most jurisdictions
the entire community
must be revalued
annually or every few
years. Depending on the
size of the jurisdiction
and the number of staff
in an assessor’s office,
an appraisal firm, often
called a revaluation
firm, may do much of the
work of valuing the
properties in the
jurisdiction. These
results are then
officially certified by
the assessor.
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When properties
are reassessed, assessors issue notices of assessments and
taxes that each property owner must pay. Assessors must be
current on tax assessment procedures and must be able to
defend their property assessments, either to the owner
directly or at a public hearing, as accurate, since
assessors are also responsible for dealing with tax payers
who want to contest their assigned property taxes. Assessors
also keep a database of every parcel in their jurisdiction
labeling the property owner, issued tax assessment, and size
of the property, as well as property maps of the
jurisdiction that detail the property distribution of the
jurisdiction.
Appraisers and
assessors write a detailed report of each appraisal. Writing
these reports has become faster and easier through the use
of laptop computers, allowing them to access data and write
at least some of the report on-site. Another computer
technology which has impacted this occupation are electronic
maps, made by assessor’s offices, of a given jurisdiction
and its respective property distribution. Appraisers and
assessors use these maps to obtain an accurate perspective
on the property and buildings surrounding a property.
Digital cameras are also commonly used to document the
physical appearance of a building or land at the time of
appraisal, and the pictures are also used in the
documentation of the report. |
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