Real Estate Appraisal FAQ

When to hire an appraiser?

For any mortgage and real estate transaction
When applying for a loan against a property
For a tax assessment to reduce property taxes or to dispute improperly assessed taxes
To settle an estate
To determine the property value when selling your home
To assist you with buying a home at a fair market price
To settle legal disputes

For answers to your questions about appraisal in Madison please call us for more information.

What is in an appraisal report?

Depending on the type of report an appraisal contains:

The precise purpose of the appraisal and the client’s objectives for the appraisal.
The reported value of the property and how that value was interpreted.
The date of valuation (retrospective, current, and prospective).
The characteristics of the property including, location, physical features, legal attributes, and all facets that affect the valuation including, economic factors, property rights, and any known defects, restrictions, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Who hires an appraiser?

Appraisers are frequently hired by lenders to establish the market value of a property for a financing transaction to help manage the risk for the financial institution. Lawyers and accountants frequently hire appraisers to help determine property values in the course of divorce and estate settlements as well as trusts, bankruptcy, and partnership disputes.

Real estate appraisal vs real estate inspection?

A Commercial Property Consultants, Inc. appraiser does not provide an inspection but performs a third party investigation of all accessible facets of a property including structure and amenities, from roof to foundation and surrounding areas for the purposes of determining its value on the open market. The appraiser attempts to view the property as a typical buyer would.

How do appraisers get information?

An appraiser gathers both specific and general data gathered from multiple databases (MLS, CoStar, SDS, STDB, Marshall and Swift, PwC, Realtyrates, etc). Tax records and a range of other public documents and records are also used in the analysis.

What standards must an appraiser follow?

All Commercial Property Consultants, Inc. appraisers must ensure that the following items are covered:

Proper analysis and inclusion of all information applicable to the assignment.
That no major errors of omission or commission were committed.
That all appraisal services were carried out in a meticulous manner.
That the final report is easy to understand, complete and not easily disputed and represents an honest, independent, and objective opinion of value.

All certified appraisers must meet extensive requirements. Commercial Property Consultants, Inc. appraisers are licensed to provide qualified reports and adhere to a strict code of ethics.

Who sees an appraisal report?

Appraisal reports for mortgage transactions may be paid for by the buyer for closing a sale, though the lending financial institution retains the right to use the report and all of its information. When a property owner hires an appraiser directly, for estate planning or tax disputes for example, the property owner retains all rights to the appraisal.