The Appraisal Practices Board (APB) is a board within The Appraisal Foundation, established to identify and offer commentary on appraisal methods and techniques. Their guidance aims to promote clarity and consistency in appraisal practices, but adherence to their recommendations is voluntary.
In real estate, the term 'Approach' often refers to the different methods or strategies used in appraising property value. Each approach considers various factors impacting the valuation of real estate.
Direct capitalization is a valuation method used in real estate to estimate the value of an income-producing property by dividing the net operating income (NOI) by the capitalization rate (cap rate).
A drive-by appraisal, also known as an exterior-only appraisal, is a valuation of a property's market value based primarily on an external inspection from the street or perimeter without conducting an interior evaluation of the property.
Mass appraising involves assessing groups of properties to estimate their values using sophisticated statistical methods, often employed by tax authorities for property tax assessments.
A Narrative Report Appraisal provides a comprehensive and detailed examination of property value using expository and descriptive paragraphs, unlike more structured formats such as forms, letters, or tables.
A professionally derived estimate of property value based on some expected future event, commonly used in real estate development and financing.
