The team at Bridgewood Properties understands that people appreciate transparency. This is why they are always up-front with clients about their processes. Each and every appraisal follows standards outlined in the Uniform Standards of Professional Appraisal Practice (USPAP). Each appraisal follows a similar progression:
- Upon engagement by the client to provide a real estate appraisal of a property, a detailed inspection is conducted. On such properties that include improvements, interior inspections and thorough measurements are taken.
- The appraiser researches the physical, legal, and economic records of the subject property and included any information deemed significant in the appraisal report.
- Next, the appraisers collect a wide variety of market data, such as sales trends, lease rates, occupancy rates, and construction figures of similar properties. The process of collecting such information typically consists of contacting real estate brokers, buyers and sellers, and other parties that have an interest in the subject area. Additional data was collected from well-respected secondary sources, such as the multiple listing service (MLS), public sources (deed records, appraisal districts, etc.), CoStar, Loopnet, cost estimating services, and other relevant sources.
- The appraisal report can include three approaches to value. The sales approach considers sales of properties similar to the subject. Adjustments are made to account for significant differences between the subject and the comparable properties. The cost approach consists of the determination of the land value of the subject added to the estimated construction costs of any improvements (minus depreciation). The income approach uses the income generating potential of the subject property to establish its market value. Not all appraisals include each approach. The appraisers use industry standards and their own professional experience to determine the applicability of each approach.
- The results of these approaches are reconciled to produce a well-supported, market based, opinion of value.
