Evaluation vs Appraisal

When do I need an appraisal?  

The IRS requires appraisals for matters that concern taxation. Divorce and dissolution-of-partnership can also require an appraisal.  Private lenders typically require appraisals.  Appraisals are performed by licensed real estate appraisers.  


Describe the difference between an Evaluation & an Appraisal?  

  • What is the difference between a Evaluation and an Appraisal Report?

  • Evaluation has:

  • No Highest & Best Use Analysis

  • Minimal Neighborhood Discussion

  • No Tax Assessment Table, Minimal Discussion

  • No Leased Fee Analysis

  • No Flood Map

  • No Floor Plan

  • Limited Number of Photographs

  • Possibly No Interior Inspection

  • Can be performed by an unlicensed non-appraiser

  • Lenders can avoid appraisal expense for properties under the deminimus and re-fi's

Evaluation The FDIC has guidelines concerning minimum reporting requirements:

XIII. Evaluation Minimum Content per FDIC Guidelines

"An evaluation should contain sufficient information detailing the analysis, assumptions, and conclusions to support the credit decision.

An evaluation's content should be documented in the credit file or reproducible.

The evaluation should, at a minimum:

Identify the location of the property.

Provide a description of the property and its current and projected use.

Provide an estimate of the property's market value in its actual physical condition, use and zoning designation as of the effective date of the evaluation

(that is, the date that the analysis was completed), with any limiting conditions.

Describe the method(s) the institution used to confirm the property's actual physical condition and the extent to which an inspection was performed.

Describe the analysis that was performed and the supporting information that was used in valuing the property.

Describe the supplemental information that was considered when using an analytical method or technological tool.

Indicate all source(s) of information used in the analysis, as applicable, to value the property, including:

• External data sources (such as market sales databases and public tax and land records);

• Property-specific data (such as previous sales data for the subject property, tax assessment data, and comparable sales information);

• Evidence of a property inspection;

• Photos of the property;

• Description of the neighborhood; or

• Local market conditions.

Include information on the preparer when an evaluation is performed by a person, such as the name and contact information, and signature

(electronic or other legally permissible signature) of the preparer."


USPAP, what is it?  

The Uniform Standards of Appraisal Practice (USPAP) is a set of rules and guidelines that all real estate professionals who are licensed as appraisers must follow.  The rules are enforced in Florida by the DBPR or Department of Business and Professional Regulation.


What should I look for when hiring a Commercial Real Estate Valuation Expert?

Access to the Multiple Listing Service (MLS) system, especially for outlying counties

MLS is a proprietary data system accessible only to "Realtors"

Access to "Comps" data from CoStar

"Comps" is the premier data subscription service for sale comps and rent comps.  


How are residential and commercial property appraisers licensed ?


Commercial RE appraisers and Residential RE appraisers have different licenses.

Commercial real estate appraisers can appraise both residential and commercial real estate.

Residential appraisers are limited to single family & multifamily properties up to four units.


Is there a list of Real Estate Service Providers that I can refer to?  Yes....

Examples include residential appraisers, private lenders, surveyors, environmental consultants,

lawyers and many more............

Yes, please visit the "RE Related Services" page on this website. 

(407) 286-5584 (Office) or 407-230-1023 (Cell)

3956 Town Center Blvd, Orlando, FL 32837

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