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Andrew Bissanti, Jr. and
his daughters, Vanessa, Francesca, and Serena. |
The easiest way to describe what an appraisal is, is by telling you what it is
not. Broker's Price Opinion and Brokers Market Analysis are NOT Real
Estate Appraisals.
These reports are fine if you feel comfortable with numbers from these
brokers but they are not done under USPAP standards, for putting these
homes on the market. Real Estate Appraisal is not a science. Reaching an
opinion of value is more of an art and that is why an experienced
appraiser is important to most lending institutions. Local Lending
institutions require state certified and licensed real Estate appraisers
for loan. Ironically, Massachusetts is the most lenient on who requires an
appraisal and who won't, but it's pretty much any Federally regulated
transaction of 250K or more. So based on current prices, as you may know,
that's probably close to 90% of the properties exchanging hands right now.
These reports typically consist of 8-l2 pages for a single-family
residence and 12-26 pages for a two Family residence. For income,
producing and complex properties over $750K "Narrative reports" are
required which can take up to 2-3 months and cost several thousand
dollars.From the
most basic form report to the most complex narrative report, real estate
appraisals define value using three approaches to value; Market Sales data
from other properties that have sold in the area within the last six
months. The comparable sales are then reviewed and adjusted mathematically
based on market perceived values. These Values are derived from years of
experience in the field. 2nd is the Income Approach with Cap
rates applied to net income. Square footage rates, CAM fees and triple
nets are terms you'll hear when you enter the world of Commercial
investment property. 3rd Is the reproduction Cost New on a
cost per SF added to land value. We then depreciate using Age/Life formula
to reflect it's Effective Age vs. current condition. In closing, I'd to
add that Bissanti Realty uses the latest data bases, state of the art
software linked to national and local Real Estate and public record
information servers for retrieving the best information to define the
value of your real Estates. Bissanti Realty also holds Bonds & E&O
insurance, the proper designations, certifications, and license in
Massachusetts and RI. We are approved appraisers for Government loans,
FHA, VA & HUD. We are closely linked with offices and colleagues so that
no job is considered too small or too large. Feel free to call our office
for any question you have about Real Estate. We'd be glad to hear from
you.
Sincerely,
Andrew M. Bissanti
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