The term property appraisal has been used to refer the process of determining what a certain property is worth through the various appraisal methods. The appraisal process was developed so as to allow the value of residential areas, commercial buildings and apartment to be easily determined when it comes to selling of the property. The appraisal process has been known to proceed the disposal process at any given time. The process of estate appraisals been mainly carried out to determine how buildings and other resources in an estate have deprecated since construction. The appraisal process is carried out by specialized commercial enterprises such as the Minneapolis commercial appraisal.
The main reason for carrying out valuation is valuation i.e. determination of the value of a property at a given time. Value as a term can be divided into three major categories which include the market value, value-In-use and investment value. The market value simply refers to thee price at which assets would trade in a competitive market setting. The term market price has also been used to refer to the estimated amount which an asset or liability should be exchanged on the valuation at a given time. The valuation at a given date Is dependent on what buyers are willing to offer for a given property.
Another type of value determined by the appraisal is the use value. The use value has also been described by another term which I the net book value. The use value in details has been described as the cash flow that an asset generates for a specific owner when it put to a particular use. This value is never constant and has at point proved to be higher that the market value while at other points this value becomes low that the market value.
The last value which is determined by the property appraisal process at http://lendersappraisalservice.com/about-us/ is the investment value. Investment value has been used to refer to the value of a given investor. The investment value is always above the market value. There are two other types of values determined during the appraisal process i.e. the insurance value and the liquidation value. Insurance and liquidity values are not very much significant as the market, value in use and investment values.
The process of valuation is carried out through a number of given ways some of which include the sales comparison approach, the cost approach, and thee income approach. The sales comparison approach is carried out by comparing a properties characteristics with those of similar properties that have been sold in the near past. The cost approach method takes into consideration what price a buyer is willing to offer and it should not be above the current market prices..