What is an Appraisal?
Texas cities we work in: (Click Below for information on your city.)
FORT WORTH SIDE:
ALEDO / ANNETTA / ANNETTA NORTH / ANNETTA SOUTH / ARGYLE / ARLINGTON / AZLE / BARTONVILLE / BEDFORD / BENBROOK / BLUE MOUND /
BRIAR OAKS / BURLESON / COLLEYVILLE / COPPER CANYON / CORINTH / CORRAL CITY / CROSS ROADS / CROWLEY / DALWORTHINGTON GARDENS /
DENTON / DOUBLE OAK / EDGECLIFF VILLAGE / EULESS / EVERMAN / FLOWER MOUND / FOREST HILL / FORT WORTH / GRAND PRAIRIE / GRAPEVINE /
HALTOM CITY / HASLET / HICKORY CREEK / HIGHLAND VILLAGE / HUDSON OAKS / HURST / KELLER / KENNEDALE / KRUM / LAKE DALLAS / LAKESIDE
/ LAKEWOOD VILLAGE / LAKE WORTH / LEWISVILLE / LINCOLN PARK / MANSFIELD / MARSHALL CREEK / NEWARK / NORTH LAKE / NORTH RICHLAND
HILLS / OAK POINT / PANTEGO / PELICAN BAY / RENO / RICHLAND HILLS / RIVER OAKS / ROANOKE / SAGINAW / SANCTUARY / SANSOM PARK / SHADY
SHORES / SOUTHLAKE / TROPHY CLUB / WATAUGA / WEATHERFORD / WESTLAKE / WESTOVER HILLS / WETWORTH VILLAGE / WHITE SETTLEMENT
/ WILLOW PARK

DALLAS SIDE:
ADDISON / ALLEN / BALCH SPRINGS / CARROLLTON / CEDAR HILL / COCKRELL HILL / COPPELL / CROSS ROADS / DALLAS / DESOTO / DUNCANVILLE /
FAIRVIEW / FARMERS BRANCH / FLOWER MOUND / FORNEY / FRISCO / GARLAND / GLENN HEIGHTS / GRAND PRAIRIE / HACKBERRY / HEATH /
HEBRON / HICKORY CREEK / HIGHLAND PARK / HIGHLAND VILLAGE / HUTCHINS / IRVING / LAKE DALLAS / LAKEWOOD VILLAGE / LANCASTER /
LEWISVILLE / LINCOLN / LITTLE ELM / LUCAS / MCKINNEY / MESQUITE / MURPHY / NEW HOPE / OAK POINT / PARKER / PLANO / PROSPER /
RICHARDSON / ROCKWALL / ROWLETT / SACHSE / ST. PAUL / SEAGOVILLE / SHADY SHORES / SUNNYVALE / THE COLONY / UNIVERSITY PARK /
WILMER / WYLIE

If your city is not listed on this list please check work area for a list of counties we serve. Also feel free to email us or call our offices for more information.
What is an appraisal?

"Appraisal" defines the act or process of developing an opinion of value. An
appraisal is not the report, which may communicate the results of that
process. An appraisal is an impartial estimate or opinion of value of an
adequately described property, as of a specific date, and supported by the
presentation and analysis of relevant data. The opinion of value is made by a
person who has sufficient knowledge and experience to accurately estimate
its value.

Types of appraisal reports.

There are three types of appraisal reports. These reports include a
Self-Contained Appraisal Report, a Summary Appraisal Report and a
Restricted Appraisal Report. Each one of these report are further divided to
include being either Complete or Limited. Most appraisal reports are
Complete appraisal reports. In some instances where a Full and Complete
Appraisal Report is not required, the appraiser may develop a Limited
Appraisal report.

Appraisal reports should all include the following:

estimate of value
effective date of the appraisal
certification and signature
purpose of the appraisal
qualifying conditions
condition of the neighborhood
identification of the property and its ownership
analysis and interpretation of the data and the assumptions made
processing of the data by one or more of the three approaches to value
and other descriptive support material

How is the value estimated?...

There are typically three approaches to value used to estimate market value
and include the Cost Approach, the Income Approach and the Direct
Comparison Approach.

The Cost Approach estimates the cost to build a new building using either
replacement or reproduction cost, at current prices, subtracting accumulated
depreciation and adding the estimated land value. This approach can be
used when estimating the value of both residential and commercial property.

The Income Approach is based on the theory that value is the present worth
of the income stream which the property is capable of producing when
developed to its highest and best use. The net operating income from the
property is capitalized into value by an appropriate method and rate. This
approach is typically used for commercial property which would also include
multi family developments such as apartment, etc. This is not an approach
which would be used if you are purchasing a home.

The Direct Comparison Approach is based on the theory that an informed
purchaser would pay no more for a property than the cost of acquiring
another existing and equivalent property. This approach to value is what most
people would associate with when an appraisal is completed for a home
purchase and is the most commonly used in reports today. The estimate of
value is based on comparing the subject property to other similar properties in
the area. Differences between the subject property and the comparable
property is reflected in either an upward or downward adjustment to the sale
price of the comparable property. This approach to value is used for both
residential and commercial properties.
Advantage Appraisal Services