Valuations of all types of real
property are conducted using
similar methods, regardless of
the type of property or who
employs the appraiser or
assessor. Appraisers and
assessors work in localities
they are familiar with so they
have a knowledge of any
environmental or other concerns
that may affect the value of a
property. They note any unique
characteristics of the property
and of the surrounding area,
such as a specific architectural
style of a building or a major
highway located next to the
parcel. They also take into
account additional aspects of a
property like the condition of
the foundation and roof of a
building or any renovations that
may have been done.
Additionally, they may take
pictures to document a certain
room or feature, in addition to
taking pictures of the exterior
of the building. After visiting
the property, the appraiser or
assessor will determine the fair
value of the property by taking
into consideration such things
as comparable home sales, lease
records, location, previous
appraisals, and income
potential. They will then put
all of their research and
observations together in a
detailed report, stating not
only the value of the parcel but
the precise reasoning and
methodology of how they arrived
at the estimate.
Appraisers have independent
clients and focus solely on
valuing one property at a time.
They primarily work on a
client-to-client basis, and make
appraisals for a variety of
reasons. Real property
appraisers often specialize by
the type of real estate they
appraise, such as residential
properties, golf courses, or
strip malls. In general,
commercial appraisers have the
ability to appraise any real
property but may generally only
appraise property used for
commercial purposes, such as
stores or hotels. Residential
appraisers focus on appraising
homes or other residences and
only value those that house 1 to
4 families. Other appraisers
have a general practice and
value any type of real property.
Assessors predominately work for local governments and are responsible for valuing properties so a tax formula can be used to assess property taxes. Unlike appraisers, assessors value entire neighborhoods using mass appraisal techniques to value all the homes in a local neighborhood at one time. Although they do not usually focus on a single property they may assess a single property if the property owner challenges the assessment. They may use a computer- programmed automated valuation model specifically developed for their assigned jurisdictions. In most jurisdictions the entire community must be revalued annually or every few years. Depending on the size of the jurisdiction and the number of staff in an assessor’s office, an appraisal firm, often called a revaluation firm, may do much of the work of valuing the properties in the jurisdiction. These results are then officially certified by the assessor.
