You've done your research and explored several properties, and now you've found The One. You're ready to make an offer on a home, land, farm, or commercial property—a significant step that may be one of the largest purchases you'll ever make in your life. Naturally, this can make you feel a bit nervous, and you want to ensure that you’re investing your money wisely for the best return on your investment. So, how can you be sure that you’re paying a fair amount? One effective way is to have a professional property appraisal conducted by a credentialed appraiser.
What Is an Appraisal?
A property appraisal is an opinion of value for a specific property as of a specific date. This value is typically determined by analyzing recent comparable sales, a method known as the sales comparison approach. However, it's important to note that this is just one part of the appraisal process. The other two primary methods include the income approach (using direct capitalization or yield capitalization) and the cost approach (which involves valuing the site alongside the costs of improvements, minus depreciation and obsolescence). Integral to its name, an appraisal is performed by an appraiser—an unbiased third party, which is crucial in maintaining the integrity of the appraisal process. This objectivity distinguishes an appraiser from agents, brokers, builders, sellers, buyers, or investors. Although appraisals are usually ordered by a buyer's lender or bank, there are many other reasons for a property appraisal, including divorce proceedings, eminent domain, potential sales pricing, litigation, or insurance evaluations.
What Does an Appraiser Do, Exactly?
The appraisal process begins with a visual observation of the property by the appraiser, although there are rare cases where this step is skipped. The appraiser gathers relevant information visually and from public or private data sources. This information includes identifying comparable sales (both land and improved properties), rental comparables, expense comparables, rate comparables, and cost comparables (taking into consideration soft and hard costs, as well as entrepreneurial incentives). The appraiser uses these findings to estimate the property's worth, which can reflect its current value, a past date, or even a prospective future value.
What Should You Look for in an Appraiser?
In short, look for appraiser qualifications that demonstrate competency! Finding the most qualified appraiser isn’t always straightforward, as their qualifications aren’t always immediately visible. Ask around for recommendations, and you’re likely to hear the same names come up frequently. We suggest speaking with the appraisers who receive the most referrals. During your discussions, you should be able to gauge whether you feel comfortable with them. Do they address your questions regarding the appraisal process? Are they knowledgeable about the local market and the property type in question? Remember, a qualified appraiser won’t be able to tell you on the spot what your property is worth—in fact, if they do, that's a red flag! The appraisal process requires thorough research and data analysis, culminating in a thoughtful opinion based on facts.
Another key indicator of an appraiser's qualifications (though not an absolute guarantee) is whether they hold professional designations or affiliations with recognized industry organizations. Prominent organizations include the Appraisal Institute (AI), the Royal Institute of Chartered Surveyors (RICS), the American Society of Farm Managers and Rural Appraisers (ASFMRA), the American Society of Appraisers (ASA), and the National Association of Appraisers (NAA). Each organization offers relevant professional designations that highlight appraiser qualifications, like the Appraisal Institute’s MAI, SRA, AI-GRS, or AI-RRS.
Why Us?
At Brantley Appraisal Company, all our analysts are affiliated with the Appraisal Institute, and we take pride in our connection with AI, recognized for establishing the standard in our profession. Our team members, Harold Brantley and Chris Stewart, both hold the prestigious MAI designation from the Appraisal Institute, and Chris additionally holds the MNAA designation from the National Association of Appraisers. Both also possess the Certified General Real Property Appraiser credentials, the highest available in the field, which allows them to appraise a diverse range of properties. Our experience encompasses appraising everything from single-family homes to agricultural, industrial, and commercial properties, including marinas, oil refineries, navigational and agricultural easements, subdivisions, and caves. Established in 1963 when Harold Brantley began his professional appraisal career and founded Brantley Appraisal Company in 1968, we bring a wealth of experience to the table.
Beyond our appraisal work, we actively engage with various local civic organizations and appraisal entities. Harold has been a lifelong supporter of the Rotary Club, Jaycee, United Way, Habitat for Humanity, and Junior Achievement, while Chris has served as a longtime member of DAV (Disabled American Veterans) and on the Edmonson County Planning Commission. We are also involved with professional organizations such as the Bluegrass Chapter of the Appraisal Institute, the Kentucky Association of Appraisers (KAA), and the American Society of Farm Managers and Rural Appraisers (ASFMRA). We encourage our staff to remain involved and engaged with the community.