Three Methods For Carrying Out An Appraisal

Not only is an appraisal the actual gathering of information used to determine a property's value, but it is also the opinion that is reached after careful analysis of that information. The current, future and most recent past local market conditions will determine all of this.

1. By determining what it would cost to construct or replace an identical property, less any value lost through any natural wear and tear, functionality or economic determents added to the value of the land itself, is the most usual approach for an appraisal.
   
   
2. An appraiser may also use an approach wherein he will research, and find, the value of similar properties within the same area that have recently been sold; then do a comparative study to reach an opinion of value.
   
   
3. The third approach is specific to commercial/income producing properties. Not only will the properties physical value be assessed but its ability to return income to the owner over a given period of time. Both the past and projected net income will be considered while determining value.

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