Common questions about real estate appraisers and the appraisal process
An appraisal is an appraiser’s opinion of value. The preparation of an appraisal involves research into appropriate market areas; the gathering and analysis of information relevant to the property; and the knowledge, experience and 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.
Illinois requires appraisers to be state certified in order to provide appraisals to federally regulated lenders. Appraisers fulfill rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. Every 2 years appraisers must participate in continuing education programs — including those that emphasize the most up-to-date valuation techniques.
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 location. Along with an analysis of the “highest and best use” of the property, an analysis of sales of comparable properties “in closest proximity to 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.
- 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
- Expert witness testimony
- Cost/benefit or investment analysis,
- for example, determining the financial
- return on remodeling
- Supply and demand studies
The following questions would be appropriate:
- Are you certified in Illinois?
- How long have you been in practice?
- How many years of experience do you have?
- Are you familiar with the market in this neighborhood?
- What types of clients do you work for, homeowners, estates, lenders, relocation companies?
All our appraisers have considerable professional experience and are required to adhere to strict standards and ethics of professional practice. Chicago Appraisals is the preferred source for high-quality appraisal services.