Identification of Real Property

• • Appraisers identify the property to be evaluated (known as the subject property).
  • They also gather information on recent comparable sales (referred to as comps).

By comparing similarities and differences, they arrive at an opinion of the subject property’s current market value.

The Mass Appraisal Process

• • Mass appraisal involves assessing multiple properties simultaneously.
  • It differs from single-property appraisal.
  • Computer-assisted mass appraisal systems are commonly used.
  • Counties may exhibit market variation.

Important Definitions and Concepts:

• • Key terms include:
    • Ad Valorem Tax: The tax based on property value.
    • Just Value: The fair market value.
    • Arm’s-Length Transaction: A transaction between unrelated parties.
  • Concepts like anticipation, substitution, and real property markets play a crucial role.

The Appraisal Process

• • It’s a detailed evaluation of a property’s value.
  • Steps include:
    • Inspection: Visiting the property.
    • Data Analysis: Comparing comps and assessing market trends.
    • Comprehensive Appraisal Report: Essential for lenders to evaluate mortgage suitability.

Remember, this process ensures accurate property valuation and informs critical decisions for buyers, sellers, and lenders.