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| What is an Appraisal? An appraisal is an estimation of value based on the actions of the buyers and sellers in the market as of the date of the appraisal. There are three primary approaches to appraising real estate:
- Cost Approach - the land value plus the cost to replace improvements minus any physical, functional or economic obsolescence
- Comparison Approach - compares the subject property to properties of similar size, quality and location that have sold recently
- Income Approach - what an investor is likely to pay based upon the potential net income the property would produce
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What's Included?
Residential appraisals can include the following items, as needed:
- interior and exterior subject photos
- plat maps
- tax card
- deeds
- surveys
- aerial photos
- location maps
- building sketch, floorplan, or blueprints
- building specifications
- comparable photos
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