Buyers Agent Services
An appraisal is an estimated value of a property at a specific date, and supported by relevant data on the area and property. This value is determined by a licensed appraiser that has met all state requirements which include education, experience and certification.
The essential elements of an appraisal are:
- Date: The appraiser only takes responsibility for the value on the date the report was created.
- Property Description: The exact property that was appraised must be identified in the appraisal.
- Estimate of Value: The appraiser is responsible to give a professional estimate of value. This is not a guess. The appraiser can be held liable if a reasonable value is not clearly identified in the appraisal.
- Signature of the Appraisal: The appraiser's signature verifies that they accept the liability and that the estimate is a "professional estimate of market value that can be relied on for decision making."
Six Step Appraisal Process
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| Define the Problem |
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Determine purpose of appraisal Identify interests (fee simple, etc.) Determine date of appraisal |
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| Conduct Survey |
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Determine personal needs, fee, and general information about the property |
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| Gather Data |
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Obtaining specific information about the property |
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| Classify Data |
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Market Data Approach |
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Cost Approach |
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Income Approach |
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| Reconcile Data |
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Reconcile the data from the three approaches to determine a final estimate of value |
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| Issue Report |
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Write the Report | |
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Letter Report |
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Short Form or Checklist |
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Narrative Report |
There is one main report that is used by most appraisers in Utah:
Universal Residential Appraisal Report: This document is usually several pages long. It consists of a write-up on the property with photos, several comparable sold listings, location maps, and an estimated value.