Frequently Asked Questions
Some commonly asked questions about Real Estate Appraisers and Appraisals
What is an appraisal?
An appraisal is a professional appraiser’s opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience and professional judgment of the appraiser.
What is the role of the appraiser?
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.
What qualifications must appraisers have?
At minimum, all states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. They have fulfilled educational and experience requirements and must adhere to strict standards and a code of professional ethics.
What are the components of an appraisal report?
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.
What are the most important considerations in the valuation of real property?
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 property.
What is the range of service appraisers provide?
- Estate planning and estate settlements.
- Tax assessment review and advice.
- Selling and buying.
- Dispute resolution – including divorce and estate settlements, and foreclosures.
- Supply and demand studies.
When hiring an appraiser, what types of questions should I ask?
The following questions would be appropriate:
- Are you licensed or certified in the state in which you live?
- How long have you been in practice?
- What level of experience do you have in this particular market and with this type of property?
- Are you familiar with property in this neighborhood?
- What types of clients have you had (homeowners, estates, lenders, relocation companies?)
Where are you located? What locations do you serve?
McHenry, IL 60050-7464Our office is 518 S Route 31 McHenry, IL and we have satellite offices in Cook and Lake Counties, serving McHenry, Cook, Kane and Lake counties in Illinois.