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.

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.

At minimum, all states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. However, appraisers who become designated members of the Appraisal Institute have gone beyond these minimum requirements. They have fulfilled rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. The Appraisal Institute currently confers the MAI membership designation on those who are experienced in the valuation of commercial, industrial, residential and other types of properties. Alan L. Johns, MAI, CPM® and Thomas P. Williams, MAI have both obtained the MAI designation from the Appraisal Institute.

They bring knowledge, experience, impartiality and trust to the transaction. In so doing, they help their clients make sound decisions with regard to real property.

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.

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.

The Appraisal Advisory Group staff can assist with the following:

• Estate planning and estate settlements
• Tax assessment review and advice
• Advice in eminent domain and condemnation property transactions
• Dispute resolution—including divorce, estate settlements, property partition suits, foreclosures, and zoning issues
• Feasibility studies
• Expert witness testimony
• Market rent and trend studies
• Cost/benefit or investment analysis, for example, what will be the financial return on remodeling
• Land utilization studies
• Supply and demand studies

Appraisers who hold Appraisal Institute professional designations have met stringent educational requirements, have considerable professional experience and are required to adhere to strict standards and ethics of professional practice that exceed those required by state or federal law. Moreover, many Appraisal Institute designated members participate in continuing education programs—including those that emphasize the most-up-to-date valuation techniques—making them the preferred source for high-quality appraisal services.