This may be market value, insurable value, investment value, or some other property defined value of an identified interest or interests in a specific parcel or parcels of real estate as of a given date. If the problem to be solved is not a question about a defined value, the assignment is considered a consulting service rather than an appraisal. A consulting service is the act or process of providing information, analysis of real estate data, and recommendations or conclusions on diversified problems in real estate, other than estimating value. Consulting services include land utilization studies, supply and demand studies, economic feasibility studies, highest and best use analyses, and marketability or investment studies for a proposed or existing development. Almost all real estate appraisals and consultations are intended to answer a question.
Appraisals have a wide variety of potential uses and functions.
Some of the more common uses of residential appraisals include mortgage financing, insurance replacement cost calculation, estate valuation, tax appeals, equitable distribution in connection with marital divorce actions and partnership dissolutions, and corporate employee relocation, to name a few. Appraisers already do consulting as a part of their work. The more common consultation assignments are pointed toward understanding how market factors affect a client's specific circumstances. Whether that be analysis of financing impact, market and feasibility studies, listing price strategies, assisting in sale negotiations, lease audits, or litigation support. The client may be a private individual, developer, lending institution, relocation company, insurance company, accountant, attorney, and the list goes on.