What is an Appraisal?
An appraisal is a written estimate of a property’s market value completed by a Real Estate Appraiser. In Idaho, real estate appraisers are required to be licensed by the State. A Certified Residential Appraiser is a step beyond the minimum licensing level required in Idaho. Certified Appraisers have the licensing credentials, experience, and training to complete standard and complex appraisal assignments. They also have the competency to supervise and train other appraisers to become certified.
The value conclusion is typically “current market value” but it can also be retrospective (based on a specified event such as date of death for estate settlement.) The final value estimate is based upon a detailed market analysis of recent sales prices for similar properties in the area, along with a review of the property’s features and physical condition. Properties are compared in side-by-side pairings and adjustments are made to reconcile differences in primary characteristics for things like: Total Living Area; Yard Size; View Amenities; Garage Capacity; Year Built; Kitchen & Bath Upgrades; Energy Efficiency & Privacy. Additional “external” factors that drive property values are also taken into consideration in the overall analysis including: Neighborhood trends; Access To Employment & Public Transportation; Proximity To Schools; Shopping & Other Residential Services. This method is commonly referred to as the Market Approach. Two additional methods appraisers may rely on for determining value are the Replacement Cost of the property and its Income Producing Potential.