An appraisal is an unbiased estimate of the monetary value of a property. Because many parties are involved with the buying or selling process of real estate, an appraisal is often required to give a fair estimate of a property’s true value.
Formal appraisals are usually performed by professional property appraisers, but an informal appraisal by real estate agents is possible as well.
Appraiser license requirements in Connecticut
In order to get their license, professional property appraisers in the state of Connecticut are required to undergo hours of appraisal education and training, depending on the type of license they’d like to obtain.
A Provisional Licensed Appraiser requires at least 75 hours of appraisal education and training, while Certified Residential Appraisers and Certified General Appraisers are required to undergo more than 200 hours of training, in addition to completing college-level requirements.
All those applying for an appraisal license are also required to pass a Level A or B licensing examination.
Inspecting a property
An appraiser is tasked with inspecting a property in order to analyze and evaluate its current status. He or she goes through the property and verifies if the features – which include number of bedrooms, bathrooms, and other details – are actually there. An appraiser is also in charge with checking the condition of the property, identifying features or defects that may affect its overall value.
Usually, a property inspection includes a sketch of a property, which ensures proper square footage and an accurate layout.
After inspection, an appraiser uses two or three approaches in order to determine the true value of the property. These methods are known as the cost approach, sales comparison, and income approach – which is more common with rental properties.
After gathering the needed information, the appraiser can now come up with an estimated market value for the property. This estimated amount is usually the best indication of a property’s worth, though it does not necessarily have to be the final sales price.