What is an appraisal?
“The act of process of developing an opinion of value.” The Dictionary of Real Estate Appraisal. It is the valuation of a property by an authorized and qualified individual with no bias.
What is a business valuation?
Is the qualitative and quantitative benefits there may be from future ownership of that business. Measuring the risk and determining the return necessary to compensate for that risk. Check out this podcast episode from Appraiser Talk for more discussion on what a business valuation is. Episode 15: "What is a business valuation?" (blubrry.com)
What is the difference between a real estate appraisal, personal property appraisal and a business valuation?
Real estate appraisal is the appraisal of real estate. This can be anything from vacant land to properties improved with residential, commercial, and industrial buildings. Personal property appraisal is the appraisal of any object that can be owned other than real estate. This can be items like equipment, livestock, tools, and machinery. Business valuations are valuing the business as a whole or a portion of a business interest, this can include the tangible and intangible assets of the business. For more discussion on the differences between these types of appraisals check out this podcast episode. Episode 12: "What are the different types of appraisal?" (blubrry.com)
Why do I need an appraisal?
There are numerous reasons for needing an appraisal. These can include but are not limited to legal use, business planning, estate planning, tax planning, financing, grants and sales negotiation. In any situation where you need an accurate and professional third party value for property an appraisal can be utilized.
Is the value estimate I see on sites such as Zillow or Redfin the same estimate I would get if I hired an appraiser to appraise my home?
These sites use an automated valuation model (AVM) to generate an estimated value. While these can provide a broad estimate based on probability from the market, it does not compare to the individualized attention to unique details that an actual appraisal can provide. Episode 1: "Is the value estimate I see on sites such a… (blubrry.com)
What makes an agricultural appraiser different?
Agricultural properties are unique from other real estate. For this reason, appraisers that train to be rural appraisers receive education geared towards the valuation of agricultural properties as well as spend 1,000’s of hours being mentored by qualified agricultural appraisers. This allows them to most accurate assess and value agricultural real estate. It is not common to see valuable cropland valued as “excess land” and given minimal value in valuations completed by individuals not competent in agricultural real estate.
How do I start the appraisal process?
How much does an appraisal cost?
We will ask you a few questions about the property to be appraised and the scope of work to estimate the time needed to complete your project. Then we will provide you with a quote for the cost and time frame based on the complexity of the project.
Do you need to inspect the property in person?
Typically, we will schedule an inspection to come out to the property. In special circumstances we may be able to complete the assignment without doing a physical inspection. It is rare that we will not complete a physical inspection.
How long will it take to get the report?
This will depend on the time of year, volume of projects and complexity of the assignment. At the beginning of the process, we will provide you with a bid which will include the cost of the project as well as the time frame for completion.
Are Agrinomic Insights appraisers certified?
Yes, our team is made up of certified commercial appraisers, members of American Society of Farm Managers and Rural Appraisers (ASFMRA) and Accredited Rural Appraiser (ARA) designated appraisers. We take education seriously and are frequently taking continuing education courses.
How long is an appraisal opinion valid?
The value is determined for the effective date of the appraisal, based on the market conditions on that specific date. If the subject market is highly volatile, that opinion of value may change more rapidly. Each lending organization has its own policy on how long an appraisal opinion of value is valid for. Check out this podcast episode for more discussion Episode 30: "How long is an appraisal opinion valid for?" (blubrry.com).
What area does Agrinomic Insights cover?
We cover the East coast. If we aren’t licensed in your state, we are able to obtain temporary appraisal licenses in your state to complete an assignment for you. We have currently done work in NY, PA, NJ, FL, NC, VA, TN, and IN. Check out our About Us page for our coverage maps.
What does it mean for an appraiser to be competent?
Being competent means, you have the knowledge and experience necessary to competently complete an assignment. Check out this quick 5-minute podcast episode discussing what it means to be competent as an appraiser. Episode 69: "What does it mean to be competent?" (blubrry.com)
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