You've done your research. You've looked at several properties and now you've found The One. You're ready to put in an offer on a home, a piece of land, farm, or commercial property. It's a big step; this may be one of the biggest purchases you'll ever make in your life. Naturally, you're a bit nervous. You want to invest your money wisely in order to get the best return on your investment possible.  So how do you know that you're paying a fair amount?  You have an appraisal performed.

What is an appraisal? 

An appraisal is an opinion of value for a specific property as of a specific date. Often, this is based off of recent comparable sales (the sales comparison approach), but this is only one of three primary approaches to value. The other two are the income approach (direct capitalization or yield capitalization methods) and the cost approach (value of the site plus the cost of improvements less depreciation and obsolescence). Integral within its name, an Appraisal is performed by an Appraiser - an unbiased third party.  This lack of bias is what distinguishes an Appraiser from an Agent, Broker, Builder, Seller, Buyer, or Investor. The appraisal is usually ordered on behalf of a buyer by the buyer's lender or banking institution, but that is only one purpose for an appraisal. Divorce, Eminent Domain (condemnation), pricing for a potential sale (for the buyer or the seller), litigation, or insurance purposes to name a few more.

What does an Appraiser do, exactly? 

The first thing an Appraiser will do is a visual observation of the property (on rare occasions, assignments must be performed without a visual observation).  They will gather information on the property visually and through public or private data sources; gather comparable sales (land and improved), comparable rentals, expense comparables, rate comparables, and cost comparables (soft costs, hard costs, and entrepreneurial incentive); and then use the results to estimate the property's worth. The property's value can be of a current date, which is most often the case, but can also be retrospective (at some point in the past) or even prospective (the future).

What should you look for in an Appraiser?

In a word, competency! The most competent and qualified appraiser should be sought after. This isn't necessarily obvious. You can't look at an appraiser and determine qualifications or competency. Ask around and you will likely find that the same name(s) come up over and over again. Our best advice would be to talk to the Appraisers whose names come up most often. In a candid discussion, you will be able to tell if this is someone you are comfortable with. Do they answer your questions about the appraisal process? Do they appear knowledgeable about the location and property type of your property? Keep in mind, an Appraiser will not be able to "off-the-cuff" tell you what your property is worth. If they do, run! What you do not want is a pre-conceived notion. Appraisers don't just know what your property is worth, they do research, gather data, apply analyses, and come to a thoughtful opinion.

Another indicator (not a guarantee, but a good indication) is professional designation or at least an affiliation with a recognized industry organization. The bigger organizations are as follows: Appraisal Institute (AI), Royal Institute of Chartered Surveyors (RICS), American Society of Farm Managers and Rural Appraisers (ASFMRA), American Society of Appraisers (ASA), or National Association of Appraisers (NAA). Each of these organizations offer professional designations. These designations are: Appraisal Institute (MAI, SRA, AI-GRS, and AI-RRS), Royal Institute of Chartered Surveyors (FRICS and MRICS), American Society of Farm Managers and Rural Appraisers (ARA), American Society of Appraisers (ASA), and National Association of Appraisers (MNAA).

Why us?

Each of the Appraisers at Brantley Appraisal Company is affiliated with the Appraisal Institute. We like to say we are affiliated with AI because they write the books. The Appraisal Institute (AI), in our opinion, is by far the best organization in this profession. Harold Brantley and Chris Stewart hold the designation of MAI from the Appraisal Institute. Each also holds the Certified General Real Property Appraiser credentials, which is the highest possible credential. This means we can appraise anything. We have not only appraised single-family homes, but agricultural, industrial, and commercial property too. We have appraised marinas and oil refineries, avigational and agricultural easements, subdivisions and caves. Our founder, Harold Brantley, MAI, has been a professional appraiser since 1963 and opened Brantley Appraisal Company in January 1968.

Brantley Appraisal Company's newest team member is Ian White. Ian is a Student Affiliate with the Appraisal Institute and is currently attending Western Kentucky University. Though not yet an appraiser, Ian is assisting with market research and learning the appraisal process.