A real estate appraisal is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property . The highest and best use is that use which produces the highest possible value for the property. This use must be profitable and probable. Also of importance is the definition of the type of value being developed and this must be included in the appraisal, ie market value, condemnation value, quick sale value, etc. For improved residential property, this value is most often reported on a standardized form, the Uniform Residential Appraisal Report.

Appraiser Skill Requirements

1. Compute final estimation of property values, taking into account such factors as depreciation, replacement costs, value comparisons of similar properties, and income potential.

2. Draw land diagrams that will be used in appraisal reports to support findings.

3. Estimate building replacement costs using building valuation manuals and professional cost estimators.

4. Evaluate land and neighborhoods where properties are situated, considering locations and trends or impending changes that could influence future values.

5. Examine the type and location of nearby services such as shopping centers, schools, parks, and other neighborhood features in order to evaluate their impact on property values.

6. Inspect properties to evaluate construction, condition, special features, and functional design, and to take property measurements.

7. Obtain county land values and sales information about nearby properties in order to aid in establishment of property values.

8. Photograph interiors and exteriors of properties in order to assist in estimating property value, substantiate findings, and complete appraisal reports.

9. Prepare written reports that estimate property values, outline methods by which the estimations were made, and meet appraisal standards.

10. Search public records for transactions such as sales, leases, and assessments.