ProcessReports-MihayloFaculty.ppt

place footer here The Valuation Process Appraisal Reports Valuation Process Definition: A systematic procedure employed to provide the answer to a client’s questions about the value of real property Process has many uses provides a framework for estimating market value (or other types of value) provides a model for performing market research analysis of data applying appraisal techniques provides a checklist for appraisers and users of appraisal services complies with the Uniform Standards of Professional Appraisal Practice Procedure: Step One Definition of the Problem Identification of: the Client and other Intended Users the Intended Use of the Appraiser’s Opinions and conclusions the Purpose of the Assignment type and definition of value definition of the question to be answered for the client limiting conditions and/or special assumptions the Effective Date of the Appraiser’s Opinion and Conclusion Sets the basis of market conditions on the as-of date As-is or Subject to (remodeling, repair, physical changes) Current Retrospective Prospective Statement of dates Two dates for each report: date of the opinion and date of the report Procedure: Step One con’t Definition of the Problem, con’t Identification of: the basic characteristics of the property The Real Estate - physical entity; “dirt + box” Location Real Property Interest to be Valued Bundle of Sticks; which rights are to be included in the valuation Fee Simple, Leased Fee or Leasehold Whole Interest Partial or Fractional Interest Any personal property, trade fixtures or intangible items Easements, Restrictions, Encumbrances, Leases etc. Scope of Work Necessary to Complete the Assignment Any Extraordinary Assumptions Any Hypothetical Conditions Other Limiting Conditions Procedure: Step Two Preliminary Analysis and Data Selection and Collection Plan the Work Schedule Selection and Collection of Data General Data Economic, Governmental and Environmental forces Specific Data Subject property: Land and Im