The appraisal service industry comprises many different companies and professionals who perform various functions. Some appraisers only provide consulting services, some appraisers only perform physical inspections, and some can do both. The degree to which an individual company offers these services varies between organizations. The following are the primary types of property appraisal.
A valuation model that values real estate using a system-based approach to estimate market value, such as the capitalization of income or discounted cash flow method. This valuation approach differs from an institutional appraisal that calculates the actual property’s value for a specific use, such as the Flagler County Property Appraisal.
Lender’s appraisals are conducted for lenders who lend money secured by real estate as collateral. They are generally used during a loan application process to determine the property’s initial value, which establishes the amount of a mortgage loan that can be secured against it.
The lender’s appraisal is also used to determine the reasonableness of an appraiser’s fees and wages. The results of a lender’s review may or may not be used by the appraiser in preparing a final report, depending on the policies of the appraisal company.
Seller appraisals are conducted for real estate owners who wish to sell their property or investment trust shares. Seller’s reviews estimate the initial value of the property or real estate investment trust shares, which the owners may use to determine whether they are asking a reasonable price.
Disclosure appraisals are conducted on homes that have been damaged as a result of natural disasters or structural defects. They provide an estimate of the cost to repair the damage and can be submitted with applications for home insurance claims.
Condominium appraisals are performed to determine the value of a condominium unit in preparation for sale or loan applications. These appraisals can be complex as they often require an analysis of the components that make up the unit.