Nationwide Mortgage, a Virginia Mortgage Lender!

  • Home
  • Refinance
    • Get Cash From Your Home
    • Lower Your Payment
    • Consolidate Your Debt
    • HARP Refinance Program
    • Pay off Your Mortgage Early
  • Buying A Home
    • First Time Home Buyer
    • Making Sure You Are Prequalified
    • Vacation Homes
    • Low Down Payment Options
    • USDA Home Loans – Rural housing loans
    • Purchase Application Checklist
    • Purchase Loan Process
  • Apply Online
  • Loan Options
    • 30 Year Fixed Rate Mortgage
    • 15 Year Fixed Rate Mortgage
    • FHA Home Loans
    • VA Home Loans
    • Jumbo Home Loans
    • Stated Income Loans
    • No Cost Loans!
    • New Construction Loans
    • Reverse Mortgage Loans
  • About Us
    • Contact Us
    • Client Testimonials
  • Blog
Home » Mortgage Articles » Basics of Appraisals

appraisalsAppraisals Explained

Appraisal Basics:

An appraisal of real estate is the valuation of the rights of ownership. The appraiser must define the rights he intends to appraise. The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property. An appraiser may spend only a short time inspecting the property, however, this is only the beginning. Considerable research and collection of general and specific data must be accomplished before the appraiser can arrive at a final opinion of value.

Due to the many types of value, such as Fair Market Value, Insurance Value, Tax Value and Value In Use, the need to precisely define the purpose of the appraisal is essential.

Basics of Appraisals

Appraisal Methods:

An appraisal is an opinion of value or the act or process of estimating value. This opinion or estimate is derived by using three common approaches, all derived from the market. They are:

  1. Cost Approach to value is what it would cost to replace or reproduce the improvements as of the date of the appraisal, less the Physical Deterioration, the Functional Obsolescence and the Economic Obsolescence. The remainder is added to the Land Value.
  2. Comparison Approach to value makes use of other “bench mark” properties of similar size, quality and location that have been recently sold. A comparison is made to the subject property.
  3. Income Approach to value is of primary importance in ascertaining the value of income producing properties and has little weight in residential type properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces. Then, after thorough analysis of all general and specific data gathered from the market, a final estimate or opinion of value is correlated.

Search

Mortgage Rate Alerts & Market Updates

Sign up to receive mortgage rate alerts and market updates delivered to your inbox!

Nationwide Mortgage Bankers

Looking for a low rate home loan? You will find low rate loans at Nationwide Mortgage Bankers! We designed this mortgage site to give you all the information you need to assist you in obtaining financing for your home.

Nationwide Mortgage Bankers is one of the largest mortgage lenders in Virginia, Offering low rates for home purchase, refinancing, debt consolidation, reverse mortgages and many other types of loans.

Recent Posts

  • A Reverse Mortgage can be a Retirees Saving Grace
  • Mortgage Rates At The Lowest Levels Seen In A Month
  • How to Submit a Down Payment Gift Letter that Won’t Get Turned Down by the Lender
  • Homebuilders Planning For Biggest New Home Sales Surge Since 2007
  • Mortgage Rates Today : Real-Time MBS Pricing, April 18, 2013
  • Purchase Money Mortgages Expand “Market Share” Against Refinances

Regions

  • Northern Virginia
  • Arlington
  • Fairfax
  • Manassas
  • Alexandria
  • Fredericksburg
  • Tidewater
  • Virginia Beach
  • Newport News
  • Chesapeake
  • Williamsburg
  • Richmond
  • Roanoke
  • Charlottesville

Copyright © 2019 · Nationwide Mortgage | 720 Moorefield Park Dr. Suite 101 Richmond, VA 23236 (804) 282-8820
Reverse Mortgage Richmond | Financial Advisor Richmond | XML-SiteMap | Privacy Policy | SiteMap
Nationwide Mortgage Bankers NMLS ID# 819382 (www.nmlsconsumeraccess.org) · Log in