Milwaukee Appraisal

Milwaukee Appraisal

If you deal in real estate as a lender, an investor, or a buyer, confidence is required, and that confidence comes from working closely with an experienced Milwaukee appraisal company. The investment and level of trust involved in transactions of this magnitude require solid information and credible investigations, which can only be provided by those with serious, verifiable experience in the practice.

Why Appraisals Matter

You understand that appraisals are important to procure funding, but having a credible appraisal is so much more important than simply checking boxes. Whether you’re dealing in large businesses, single-family homes, or anything in between, the property in question probably has a price tag on it, but it’s impossible to know what is actually backing that price up. If someone is willing to pay the price upfront – without funding – that is one thing, but generally, properties are purchased in conjunction with lending institutions that are not in the business of loaning vast amounts of money without all the requisite evidence to back up the transaction. 

Approaches to Appraisals

While different appraisers use different approaches to appraisals, there are three basic methods that generally encompass most well-regarded appraisal systems. These include:

• Income Capitalization – Income capitalization obviously refers to the income the business in question will likely generate. This approach is reserved for the purchase of real estate that includes rental properties, commercial enterprises, restaurants, retail stores, and more. This valuation approach focuses on the revenue that’s expected to be generated by the enterprise in question and the investor’s expected to return in relation to this net income. Income capitalization is a complicated and nuanced valuation process that requires experience, skill, and a strong commitment to obtaining a trustworthy final product. 
• Sales Comparison – The sales comparison – or market approach – to valuing a property adopts a comparative approach that is typically reserved for the purchase of single-family homes. In this approach, similar structures in similar conditions with similar amenities and in similar locations that are sold in similar markets (robust, lagging, or anything in between) – are valued in accordance with one another. This is a true comparison method that requires knowledge of the market in specific locations. 

• Overall Cost – The overall cost approach to valuation amounts to a mathematical technique in which the true values of a property’s parts are added together to provide a total value. This means that the value of the land, the structure on it, and all updates and improvements made are compiled – while depreciation is subtracted – to formulate an overall value that approaches the cost of starting from scratch and engaging in a new build. This technique requires detailed knowledge of current build costs, methods of calculating depreciation, and land valuations. 

The type of valuation method used is based on the type of purchase in question and the property’s intended use.

Consult with an Experienced Milwaukee Appraisal Company Today

If you need an appraisal – for the purposes of loaning, purchasing, or investing – the experienced and certified appraisers at Allstate Appraisal in Milwaukee are committed to providing our valued clients with quality, compliant valuations that are both timely and credible. We’re here to help, so please don’t hesitate to contact us for more information today.