The appraisal process has been used widely to determine what a property is valued at in a given time by appraisal experts. The term appraisal is used very much when to comes to residential, commercial and apartments. 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. Valuation of property requires individuals with valuation skills who have professional training and experience I the appraisal field.
The appraisal process is normally carried out to determine the value of a property. 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 is carried out in order to determine the price at which assets would trade in the competitive market environment. 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 price the buyer is willing to buy and at what price is the seller ready to sell the property.
The second value which is determined by the appraisal process or use value. The use value has also been described by another term which I the net book value. The use value can be described as the benefit in term of money that an owner gains I the process of utilizing a given property. The use value is not predictable as it has at times been recorded to be above the market and at times to be below the market value. The last value which is determined by the appraisal process is the investment value. Investment value has been used to refer to the value of a given investor.
Unlike the value at use, the investment value I constant as it is always above the market value. There are other values which are determined during the appraisal process and which are the insurable and the liquidation value. The two minor values are not taken into much consideration during the appraisal process as the involve less amount of money.
The process of determining the various value of property can be carried out through various methods which include sales comparison approach, the cost approach and the income approach. Determination of the value of an estate or an apartment by use of the sales comparison approach involves comparing the value of a property with similar properties which have been recently sold. 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..