Appraisal

An appraisal is an opinion of value, performed by an individual who is competent and impartial. Generally, the appraiser determines market value; but in some cases, may be asked to determine insurable value, liquidation value, investment value, etc. The appraiser will normally consider the three approaches to value,

(1) the cost approach,

(2) the market approach, and

(3) the income approach.

For financing appraisals, the appraiser is sometimes asked to determine market value, subject to assumption of the

balance of special assessments. In those cases, the contributory value of the special assessment improvements must be added to estimate true and full value for assessment purposes; as assessors are required to assess all improvements, free and clear of the encumbrance.