Insights Basics
What an appraisal is, and what it is not
An appraisal is not an assessment or a broker's opinion. Here is what you actually get, and why the effective date matters.
People use the word “appraisal” for many different numbers. The county has a value for your property. A real estate agent may give you a price range. An online estimate shows up the moment you search your address. None of these is an appraisal, and knowing the difference can save you time and money.
What an appraisal is
An appraisal is a written opinion of market value, prepared by a licensed appraiser as of a specific date. It is an independent, objective analysis of comparable sales, land sales, listings, leases, construction costs and other market data. The appraiser has no stake in the outcome. The job is to find the number the evidence supports and to show the work behind it.
A good report tells you what was appraised, why, for whom, and how. It states the intended use, describes the property and the market, explains which approaches to value were used, and reconciles them into a final opinion.
What it is not
- Not an assessment. The county assessor values every property for tax purposes, usually with mass appraisal models. That value can be a useful starting point, but it is not an individual analysis of your property.
- Not a broker's opinion. An agent's price opinion or market analysis is built to help list or buy a property. It can be helpful, but it is not an independent appraisal and is usually not accepted by courts or tax boards in its place.
- Not an online estimate. Automated estimates cannot see the condition of the kitchen, the drainage on the back acreage or the lease terms on a retail building.
Why the effective date matters
Every appraisal is tied to an effective date: the date the value applies to. Markets move, so the same property can have a different value a year later. The right date depends on why you need the value. An estate settlement usually needs the value as of the date of death. A divorce may need a value as of a date set by the parties or the court. A property tax appeal looks at the value as of the county's assessment date.
Getting the date right from the start avoids paying for a second report. When you contact us, tell us the intended use and any date that matters. We will scope the assignment around it and put the delivery date in writing.
This article is general information, not an appraisal or legal advice for a specific property.
