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Frequently Asked Questions Question: What is an Appraisal? Answer: An appraisal is a professional opinion of a properties value by a qualified licensed or certified Real Estate Appraiser. Question: What Types of Value are there? Answer: There are several types of value which include, but are not limited to: market value, insurable value, and salvage value, cost to build. Question: How Is a Value Determined? Answer: There are 3 approaches to Value:
Question: How Much Does An Appraisal Cost? Answer: The cost of an appraisal report will vary depending on the type of appraisal assignment required or requested by the client. A typical single family appraisal report will vary from $225.00 to $450.00, depending on the type of form utilized which is typically agreed upon by the client and appraiser. Higher valued homes, commercial, industrial, and specialty properties will require higher fees and are usually determined based on the assignment. Question: What is the difference between an appraisal and a comparative market analysis (CMA)? Answer: A CMA is an informal estimate of market value performed by a real estate agent based on similar sales. This service is usually free of charge in hopes to winning your business. Typically this value is not based on the specifics of a home, and can be inaccurate in many areas. A CMA can not be used for mortgage purposes! An Appraisal is an opinion of value with the report completed on a legal document that is performed by a licensed and qualified individual with extensive education and experience. An appraisal can be used for mortgage purposes! *REAL ESTATE APPRAISERS IN MICHIGAN ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE MICHIGAN DEPARTMENT OF LABOR AND ECONOMIC GROWTH, P.O. BOX 30018, LANSING, MI 48909. Question: What is Market Value? Answer: Market value is the most probable price, as of a specified date, that a property may sell for performed by a real estate salesperson or broker. Question: What is Appraised Value? Answer: An appraised value is an opinion of value of the worth of a home at a given point in time performed by a licensed or certified appraiser. Lenders required appraisals as part of the loan process with fees varying depending on the type of appraisal assignment. |