Have you always wanted to know the process that an appraiser goes through in completing an appraisal report? No, appraisers do not just pick values out of a hat!! There are six basic steps that appraisers follow for every appraisal. These include:
1. Problem Definition
2. Appraisal Plan
3. Data Collection
4. Data Analysis
5. Final Value Estimate
6. Written Report
When we receive a request to perform an appraisal, appraisers generally define the assignment. There are four areas that an appraiser further investigates: type of value, type of property, effective date of appraisal and conditions. This is commonly referred to as "scope of work." The appraisal plan developed by the appraiser helps the appraiser organize the way in which he or she will approach the rest of the assignment. Collection of data includes the preparation for the visit of the subject and the actual viewing of the subject and the comparables. Next, appraisers organize all the data collected and discern between the credible and incredible information and ultimately decide which information will be used to prove the opinion of value. Step 5 is where the appraiser decides on the value. The final step is creating the written report which describes the entire appraisal process and supports the appraisers opinion of value.
Appraisers are required to adhere to a set of standards which define their role in society and describe the appraisal process. These guidelines are referred to as USPAP, or The Uniform Standards of Professional Appraisal Practice. Two groups govern USPAP and help develop the framework which appraisers work within: The Appraisal Foundation and The Appraisal Subcommittee.
The Appraisal Foundation is a private, not-for-profit organization established for educational and scientific purposes. TAF is made up of The Board of Trustees, The Appraisal Standards Board and The Appraisers Qualification Board. Between these three bodies, they develop, interpret, and amend USPAP and approve USPAP education. The Appraisal Subcommittee provides federal oversight of The Appraisal Foundation.
And because every appraiser in the United States is guided by the same standards, consumers can expect a high level of uniformity in the types and extent of information provided in appraisal reports.
To learn more about appraisers, appraisals and appraising, visit http://www.appraisersantaclarita.com |
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