During NY appraisals, facts lead to estimations
Those who have never been involved with nitty-gritty of NY appraisals, often think that appraisals are subjective opinions of the appraisers. However, we’d like to clarify an important point here. NY appraisals follow established techniques and they are much more than just opinions. In fact, an appraisal report that is generated and presented is based upon specific facts. An appraiser has knowledge of various appraisal methodologies and is requisitely skilled to apply these procedures.
Property values are estimated based upon factual details like the sale prices of recently traded properties. In this case, comparable properties in a particular area are considered. Likewise, the appraisers also work out the replacement cost of the property.
In this process, they calculate the expenses that will be incurred if the property is built from scratch. So again, findings are supported with calculations. In a similar pattern, other factual details like capitalization rates, rental rates, etc., are noted. But if all calculations are based upon data and facts, why do the appraisal reports vary?
Appraisal reports tend to vary because often, it is difficult to find as much relevant data. In absence of desired information, calculative adjustments are made. Result disparity arises of account of varying assumptions as made by different appraisers. Thus, while an appraisal report for the same property could differ from a report generated by another NY appraiser, it is not essential that either of them is wrong. But then how should one decide if an appraisal report is credible. The findings of appraisal reports vary as per the purpose and to confirm its authenticity, court considers the format of an appraisal report. Additionally, hiring a skilled and reputed appraiser in NY can solve this problem.