Common Types of Appraisal Reports
There various types of real estate and equipment appraisals that an appraiser can conduct on behalf of a client. It is important to know the nuances of each type of appraisal so that you know what you are getting at the outset. Here are some examples of common types of appraisals.
- Full appraisal or self-contained appraisal – A full appraisal is comprehensive, and often used for real estate appraisals. It draws on data from numerous sources to achieve the most accurate appraisal. An appraiser will inspect the interior and exterior of the property and pull data from various sources, including MLS, assessor, and tax records. Additionally, an appraiser will compare the property with recent sales of similar homes in the same area or neighborhood.
- Summary appraisal – A summary appraisal report, while used for real estate, often is used for estimating the value of machinery and equipment. These reports include on-site inspection details and assess single values of each tangible asset in addition to an aggregate value.
- Drive-by appraisal – A drive-by appraisal – although it doesn’t sound very appealing – is conducted on the perimeter of the property or when an appraiser drives by a property, but he does not enter and inspect the property.
- Desktop appraisal – A desktop appraisal, also as its name implies, is generally conducted by an appraiser sitting at a desk, who examines photographs and other supporting documentation. In this case the appraiser does not visit the site of the property being appraised.
- Automated valuation appraisal – An automated valuation appraisal is conducted using data from sales of property in the local area. An appraiser will use software that is designed to determine patterns of value and generate a value of the property or value range.
By: Present Value