Frequently Asked Questions (FAQ)

What types of property do you appraise?

Real Estate Appraisers of Northern Colorado appraises a variety of property types including: Commercial properties, farms, ranches, recreational properties, mountain properties, agribusiness, resort properties, special use properties, gravel mines, airport properties and other property types


What is an Appraisal?

Appraisal is the act or process of developing an opinion of value. Appraisal involves selective research into appropriate market areas, the assemblage of perinate data, the use of appropriate analytic techniques, and the application of knowledge, experience and professional judgement to provide an appropriate solution to the appraisal problem. There are three broad approaches to value. The cost approach values the land as if vacant, adds the replacement cost of any improvements and deducts any depreciation to arrive at an indication of value. The sales comparison approach compares the property to other properties that have sold. Adjustments are made to the sales for various elements of comparison to arrive at an indication of value.  The income approach analyzes the income producing properties of the property using market rents and market capitalization or discount rates. Any one or all three of these approaches may be used to develop an opinion of value.


What is Market Value?

There are several definitions of market value depending on the purpose of the appraisal. The most often used definition is: The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold un affected by special or creative financing or sales concessions granted by anyone associated with the sale.


How are appraisers certified?

Regulations regarding licensing and certification vary from state to state. However, licensing and certification is most often associated with many hours of coursework, tests and practical experience. Once an appraiser is licensed, he or she is required to take continuing education courses to keep the license current.


How much does an appraisal cost?

The cost of an appraisal varies greatly depending on the purpose of the appraisal, the scope of work, the complexity of the property and reporting requirements. In general, the cost of an appraisal ranges from $2,500 to $10,000. Complex appraisals can cost in the tens of thousands of dollars.


How long does it take to complete an appraisal?

A commercial appraisal usually takes one to two weeks to complete, depending on the scope of work for the assignment. A typical waiting period is one to six weeks depending on the work load in the office. Some complex assignments may take much longer.