Date of Appraisal

Definition

The “Date of Appraisal,” also known as the “Appraisal Date,” refers to the precise date on which an appraiser evaluates and establishes the value of a real estate property. This assessment is critical in various real estate transactions such as sales, refinances, and tax assessments. The value determined as of this date reflects the property’s worth given the market conditions at that specific time.

Examples

Home Purchase: Before finalizing a mortgage, lenders often require an appraisal to ensure the property’s value justifies the loan amount. For instance, if an appraisal dated March 1, 2023, values a home at $350,000, the lender can use this information to confirm the loan amount.
Refinancing: A homeowner looking to refinance their mortgage is required to get an appraisal to determine the current value of their home. An appraisal completed on June 15, 2022, revealing a value of $400,000, would affect the terms of the new loan.
Property Tax Appeal: If a property owner feels their tax assessment is too high, they can order an appraisal to support their case. An appraisal with a date during the previous tax period (say December 31, 2021) might show the property was worth less than the assessed value.

Frequently Asked Questions

Why is the Date of Appraisal important?

The Date of Appraisal is crucial because it establishes the value of a property at a specific time, which can impact loan amounts, purchase decisions, and tax liabilities.

How is the Date of Appraisal different from the date of the appraisal report?

The Date of Appraisal is the exact date on which the property value is assessed, whereas the date of the appraisal report is when the appraiser completes the document outlining the property’s worth.

Is the Date of Appraisal relevant in historical property analysis?

Yes, the Date of Appraisal is especially relevant in historical property analysis, helping to understand property value trends over a specific period.

Can the Date of Appraisal affect my property taxes?

Yes, the value determined on the Date of Appraisal can influence property taxes. If the appraisal indicates a lower value than assessed tax value, it could potentially lower your property taxes upon appeal.

How often should an appraisal be conducted in rapidly changing markets?

In rapidly changing markets, appraisals should ideally be conducted more frequently to get the most accurate and current valuation.

Appraisal

An appraisal is a professional assessment of a property’s value conducted by a licensed appraiser. It involves evaluating physical condition, market conditions, and comparable property values.

Market Value

Market Value refers to the amount for which a property could reasonably be sold on the open market as of a particular date.

Assessed Value

The Assessed Value is the value assigned to a property by a municipal or county tax assessor for the purposes of taxation.

Appraisal Report

An Appraisal Report is a documented report prepared by an appraiser that outlines their assessment, methodology, and the value of the property as of the Date of Appraisal.

Online Resources

References

Appraisal Institute. (2020). “The Appraisal of Real Estate” 14th Edition.
Ling, D.C., & Archer, W.R. (2018). “Real Estate Principles: A Value Approach.” 4th Edition.
Schmitz, A., and Epstein, S. (2017). “Real Estate Appraisal” 8th Edition.

Suggested Books for Further Studies

“The Appraisal of Real Estate” - Appraisal Institute
“Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
“Real Estate Appraisal” by Richard M. Betts and Silas J. Ely
“Fundamentals of Real Estate Appraisal” by William L. Ventolo Jr. and Martha R. Williams

Real Estate Basics: Date of Appraisal Fundamentals Quiz

### What is the 'Date of Appraisal'? - [ ] The date when the property was built. - [ ] The date the property was sold. - [x] The specific date on which an appraiser evaluates a property’s value. - [ ] The date the loan was approved. > **Explanation:** The 'Date of Appraisal' is the specific date on which an appraiser assesses the value of a property. ### Why is the Date of Appraisal important? - [x] It establishes the property value at a specific point in time. - [ ] It records the property's current ownership. - [ ] It denotes when the appraisal report was filed. - [ ] It signifies the loan approval date. > **Explanation:** The Date of Appraisal is significant because it provides an exact time-based value assessment of a property, affecting various real estate decisions such as loans and taxes. ### What can the Date of Appraisal influence? - [ ] The architectural design of the property. - [x] The loan amount and purchase decisions. - [ ] The demographic information of the neighborhood. - [ ] The landscape design incumbencies. > **Explanation:** The Date of Appraisal can significantly influence loan amounts, purchase decisions, and tax liabilities, as it reflects the market value of the property on that specific date. ### What should you do if you believe your property assessment for tax purposes is too high? - [ ] Ignore it. - [x] Order a new appraisal. - [ ] Increase the assessed value. - [ ] Change the property's usage. > **Explanation:** If you think the assessed value is too high, you should order a new appraisal to provide recent evidence of the property’s actual value. ### What differentiates the Date of Appraisal from the date of the appraisal report? - [ ] Both are the same. - [ ] One is mandated by local law while the other is not. - [x] One is the appraisal date; the other is the completion date of the report. - [ ] They are reporting dates in different formats. > **Explanation:** The Date of Appraisal is when the appraiser evaluates the property, whereas the date of the appraisal report is when the report documenting the appraisal is finalized. ### What type of property should have more frequent appraisals in rapidly changing markets? - [x] All types equally. - [ ] Commercial properties only. - [ ] Residential properties only. - [ ] Government-owned properties. > **Explanation:** All types of properties in rapidly changing markets should have frequent appraisals to ensure valuations reflect current market conditions. ### What is Market Value? - [ ] The mortgage amount. - [ ] Rental income amount. - [ ] Historical sale price. - [x] The amount a property could reasonably sell for on the open market. > **Explanation:** Market Value is the amount a property is likely to sell for under fair conditions on the open market. ### What is an Assessed Value? - [ ] The price agreed upon by buyer and seller. - [ ] The market price a recalled property was bought for. - [x] The value determined by local authorities for tax purposes. - [ ] The historical sale amount. > **Explanation:** The Assessed Value is the amount determined by local municipalities for taxation purposes. ### What constitutes the core content of an appraisal report? - [ ] Rental agreements. - [x] The appraiser's assessment, methodology, and the property value. - [ ] Financing terms. - [ ] Homeowners’ insurance details. > **Explanation:** An appraisal report contains the appraiser’s assessment, the methodology used, and the determined property value. ### When should historical appraisals be considered in property analysis? - [x] Always, as they help understand property value trends. - [ ] Never, due to out-of-date methods. - [ ] Only in legal disputes. - [ ] When looking for comparables. > **Explanation:** Historical appraisals should always be considered to help understand how property values have trended over time.